Thanks Diesel. I think you have accurately described how I am doing updates on my iOS devices currently.
Just in case someone from apple is reading this here are some more details on what I was thinking:
The devices on my network are all iOS5 or higher. The updating directly from the device (over wifi) works correctly.
My real issues are saving bandwidth and updating devices on a consistent and coordinated manner.
For my Mac OSX updates, the central Mac OSX server downloads all of the updates once and then the Mac OSX clients are configured to use the internal central server to complete the updates. Doing it this way saves me bandwidth and makes the client updates very fast.
I have followed these instructions below and it worked flawlessly (assuming all of the Mac OSX clients are at the correct OS version number to work with Mountain Lion server):
http://support.apple.com/kb/HT4069
I'm looking to do the same thing with our iOS devices. I can see that there is additional complexity because of the requirement to sync the Mac OSX Server iTunes with the AppStore prior to updating the devices but I thought that there might be a way. I'm really only looking to update the core apple apps on the devices and the core of iOS. I really don't care about centrally updating the latest version of Angry Birds but that would be nice (lol).