I have and it hasn't given me any issues. I'm not exactly what is new with it but everything has been working just fine on my system.
Same here. Installed it in both an i3-2100/Intel motherboard system and an i5-2500K/Gigabyte motherboard system, and haven't had any problems, and haven't noticed any differences, although I haven't really looked.
I would generally always advice against using Graphics drivers from Windows Update.
I installed the latest version from Intel.com, and the Windows Update notification about new drivers vanished, so i can only conclude that its the same version.
So if you want new drivers, get the latest from the Intel website.