save_post hook $update parameter

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In the save_post hook, how exactly does the $update parameter work?
It “seems” unstable from time to time.

I took a look in wp_insert_post, and $update is set to TRUE if the $postarr array specifies the ID.

I might be mistaken, but from a user standpoint, when you start creating a post and save it for the first time, $update must be false. However, it doesn’t always seem to be the case.

Is it because of the draft auto-save? If it is, the $update parameter is really counter intuitive.

What would be the right way to know if save_post is running an $update or not.
I’ve seen a comparison between $post->post_date and $post->post_modified but it doesn’t seem exactly right. There is the classic DOING_AUTOSAVE constant check, but I guess that funks the thing up.

Shouldn’t the $update be better designed?