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http://dus01.ps3.update.playstation....7/PS3PATCH.PUP - there is a new PS3PATCH.PUP update that is about 40mb, and is just the incremental update (few files from dev flash, along with the core os, the revoke lists and syscon updates) - which, is probably for a few reasons.
One of which being - its less stress for everyone, Sony's servers, bandwidth, people downloading etc. Furthermore, helps with the new Auto Update stuff in PSN+ - less data to download.
Not quite, namely since all firmware updates are incremental, they need to store every past update inside as well (sort of) - basically enough so you could reflash your system from .96 or above with the PUP, and be up and running.