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No, this option has long been gone. All 11.1.2.x version need a fresh oracle middleware home.
We never supported a full version upgrade using the check-for-update.
Check for update is used for extension and occasionally for patches - but not for a complete new version install.
i'm not taking these updates for granted but at the same time it would be a great convenience for jdev auto update minor releases. our dev copy has many custom configs (ide.conf, setdomainenv.cmd, svn/app/db conn, adflib etc) and also embedded wls data sources reconfigured.