Why is it that WP doesnt have an option like “auto update” or at the least, a smaller upgrade package instead of having to upload the whole latest package and run the installation all over again ?

Anyways, after a lot of googling, i came across Deimos page with a re-packaged update.

Download the Re-Packaged files here:
http://ahkong.net/index.php?dl_id=1

Installation Notes
Just “copy and paste” or “upload and overwrite” the following “List of Updated Files” which is included in the re-packaged zip file archive available for download in the above link.

Differences :  WP 2.3.2 against 2.3.1
wp-admin/includes/file.php (modified) (1 diff)
wp-admin/admin.php (modified) (1 diff)
wp-admin/setup-config.php (modified) (2 diffs)
wp-admin/install.php (modified) (4 diffs)
wp-includes/formatting.php (modified) (1 diff)
wp-includes/functions.php (modified) (5 diffs)
wp-includes/post.php (modified) (2 diffs)
wp-includes/pluggable.php (modified) (1 diff)
wp-includes/taxonomy.php (modified) (1 diff)
wp-includes/query.php (modified) (2 diffs)
wp-includes/version.php (modified) (1 diff)
wp-includes/wp-db.php (modified) (9 diffs)
wp-app.php (modified) (6 diffs)
wp-mail.php (modified) (3 diffs)
wp-settings.php (modified) (1 diff)
xmlrpc.php (modified) (18 diffs)