This bug was fixed in the package ubuntu-system-settings -
0.3+14.10.20141001-0ubuntu1

---------------
ubuntu-system-settings (0.3+14.10.20141001-0ubuntu1) utopic; urgency=low

  [ Ken VanDine ]
  * Fixed handling of the Downloading/Installing label based on actual
    state. . Forward updateProgress signals for system updates. Layout
    fixes (LP: #1312587)
  * Use new splash screen (LP: #1376242)
  * Improved tracking download states
  * Use new target_build_number from system-image-dbus to determine
    visibility of the update notification (LP: #1355803)

  [ CI bot ]
  * Resync trunk
 -- Ubuntu daily release <[email protected]>   Wed, 01 Oct 2014 
16:01:54 +0000

** Changed in: ubuntu-system-settings (Ubuntu)
       Status: In Progress => Fix Released

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https://bugs.launchpad.net/bugs/1312587

Title:
  Update downloading incorrectly presented as "Installing"

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