Seems some members are confusing the issue a little. The mechanism has not changed for purchasing and installing new apps to the device. Passwords are still required first time and again after the standard timeout (15 mins if I recall). This timeout can be adjusted in Settings > General > Restrictions > Require Password.
The restrictions on entering your password have been relaxed when applying UPDATES from the App Store to apps which are already installed on your device. In this case, you are not required to provide your password to update the app on IOS6.