I'm confused about 'downloading' options via iTunes

When updating via iTunes, you get two options: (1) Download & Install NOW or (2) Download only [to install later]. I chose the 2nd option, as I wasn't quite ready to update my iPod touch to iOS 5. The download went surprisingly quick... took only 5 minutes. I thought it was strange, considering that people were Tweeting left and right that it was going to take 5-7 hours for their downloads to complete. When I finally went to update my iPod several hours later, instead of the update being there and ready to install... iTunes connected to the Apple Servers and started downloading the entire iOS 5 from the BEGINNING! Now, I'm also getting the estimated 7 hours to complete mantra. What gives? What the h*** is the purpose of giving me an option to download and install at a later time, if that's now what actually takes place? What am I confused about? Can anyone provide some insight? I'm highly upset right now.

"I just upgraded a song but i checked back a few hours later to see that the song i just upgraded was available for an upgrade that i already purchased.
What sense does that make? "
Er, none at all actually.
Wanna re-post the question?

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