AppStore on iOS 4.3 now recognizes previously purchased apps that haven’t yet been installed

Woops! This was a Appstore update 2 weeks ago

A cool new feature that is now in 4.3 is the ability for the App Store to check your account for applications that aren’t yet installed, but have been bought in the past. The App Store will now show “INSTALLED” rather than the app’s dollar value and then displaying the message “You have already purchased this item. To download it again for free, select OK.

This feature appears to be exclusive to the iPad iOS only. iPhone 4.3 still exhibits the previous behavior.