hmmmm in a way yeah, if you ever install google chrome think of it like that.
instead of downloading the actual exe, you download an app that connects to a server, gets the latest version of the app you want to install and installs it.
it might seem redundant, and it is in some ways, but by making the installer app do more than one program you maximize the process. except this one can do it much more efficiently, if you have multiple machines that require updating for example you can set it up to download all the progs you want into a cache, then run the same ninite exe on the client stations and point it to the cache share on the network it can run silently so setting up workstations to auto update applications can be transparent to the users