Andreas, this is my best understanding.

Users will have to reach installation through any of the means (ubuntu-
drivers, or apt-get install).

When they reach the installation it will happen what you described.

Prompting for a password will be dependent on the setup. AFAIK:

a) If secure boot is disabled, no prompting.
b) If it is not the first time you install a DKMS, no password prompt will 
happen.
c) If it is the first time you install a DKMS, then the prompt will happen.

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https://bugs.launchpad.net/bugs/2155202

Title:
  Severe hardware functionality regressions caused by forced major
  version updates for NVIDIA drivers (originally: Latest Update Breaks
  Systems Using Nvidia 470)

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