One hint to people. You must delete the 1.6 patch in order for the 1.7 patch to be detected. I guess since thier both named skyrim title update the game won't know there's a newer one. I just had to do this myself.
I don't know. But I was putting my 360 on every 30 minutes waiting for the patch and I didn't get a notice until I went and deleted the title update on my HD after I saw it on here.
It is most likely that the patch became available just at the point when you deleted the title update, leading you to conclude that it was the process of deleting the old version that triggered your Xbox to update. Here is some interesting evidence to the contrary: I keep my title update on a USB drive. When I connected my Xbox to the internet today, Skyrim detected the 1.7 title update and downloaded it to my 'hard disk'. I then loaded the game and went into the system menu and checked the version number, and it was 1.7.10.0.6. I then went back to the Xbox dashboard and saw that I had two title updates, i.e. one on my hard disk (patch 1.7) and also the previous patch on my USB drive (patch 1.6). Additonally, when patch 1.4 was issued a while ago, (which was over the 6Mb threshold so it became a 'Title update' and not a hidden file stored in the system cache) I would start the game and play version 1.4. However, I found that I could then delete patch 1.4 title update. and (because I hadn't cleared my system cache) I could roll back to patch 1.3, which was still stored in the system cache. What this means is, that when playing a game, the Xbox will search 'all connected devices' for the latest patch versions available, and ignore any previous versions.