I recently installed FC3 and had to go through the update procedure and download several hundreds of megabytes.
I could imagine that once or twice an Updates CD-ROM would be released. The Fedora installer might ask after an installation for the user to insert an Updates CD-ROM if available, and perform the required updates.
http://mpeters.us/linux/fedora_c3_updates.php
It's not from RH/Fedora, it's my own creation (created nightly from cron - lftp mirror - so it is always fresh) but all the updates are from Fedora - and signed by the Fedora GPG key.
I use it when setting up someone on Fedora who can't bring their PC to my house, it brings there boxes right up to patch level easily and painlessly.
Put DVD in, run autorun, and it updates the system through yum from the CD (w/o altering your system yum configuration, and respecting any excludes in main yum.conf or /etc/yum.repos.d/fedora-updates.repo)
There's also another company that for $99.00 a year (I think - I might have that wrong) sends you new install CD's every month that have all the updates integrated right into Anaconda - which is the better solution probably for the IT department that does a lot of Fedora installs.
I don't remember the companies name, but I suspect someone here will.
