Dear Anant,
I've been thinking about this for a while. And it might be possible to code a 'Purge all caches' event in the update script. However, on the flip side, being an administrative and technical job to perform the upgrade I do expect the administrator to follow the installation / update guidance I've carefully written in the 'Readme' file as you would with any software of this nature in a multi-user environment where the level of expertese is such that it is greater than the average computer user.
Sometimes there is no substitute for reading the fine manual ;)
Cheers,
Gareth