Requiring users to download a zip, extract it, then put the plug-in in drop ins is an archaic installation method. By providing an update site users can install with just a URL. Furthermore they can uninstall later, download updates, and understand what dependencies the plug-in has.
Having updates available quickly is important. In the first 2 minutes of trying out the plug-in I hit a string index out of bounds exception.
If you need help building the update site, please sametime me.
Eclipse PDE Component Lead