Sean,
Yes, Oracle did just release 8.96.1.0 (aka 8.96 Update 1). According to their new tools release update methodology, Updates should be released about every 3-4 months, and are supposed to be more fully (regression) tested than the (approximately) monthly Tools Maintenance Packs. That being said, if you're looking to stay fix-current, then the best strategy would be to go with the latest Update. If you need a specific issue addressed, then go with one of the monthly Tools Maintenance Packs. Note also that 8.96.1.0 includes support for Internet Explorer version 7 for web clients.
There's a good explanation called "Tools Release Process Update" on the Update Center part of the Customer Connection. To me, it's a must-read for any EnterpriseOne site.