yum update only updates what was installed from RPMs. To see the entire list:
Code:
# rpm -qa
Sure you may want to update the kernel, but you may want to do it when you can be around, instead of every night automatically, in case (for example) it doesn't automatically install all the needed kernel modules (we had this problem with a client this evening).
You need to update a lot more than the RPM stuff; you should run the customapache stuff quite often as well. And there are other programs to update manually, too.