It's helpful when applications let me know that new versions have been released, especially when it's a browser letting me know about a security update.
In most cases, though, the timing sucks - just as I open the application with a specific goal in mind, I'm given a choice to make. Either I allow myself to be hijacked down a upgrading detour, taking me away from my immediate goal, or I dismiss the upgrade dialog and have to remember to do it myself later on. Neither option is particularly helpful.