Earlier quoted context omitted.
Historically you could use OSX Server as a local update/patch server, and have other Mac's on the LAN use it instead of downloading the same stuff again. They say they're making Lion Server free and easily configured, and I'm hoping that they're integrating the App store components as well.
Unless I missed something in the presentation, Lion Server isn't free. It's a separate app that costs $50 https://www.apple.com/macosx/server/
My biggest peeve is the download-only for the OS, as I have rather crappy internet access, and dread the thought of downloading a multi-GB update.