Hey just figured it out - the only "update" notifications and options in the dashboard are for the framework. There's absolutely no way of knowing that the theme itself is out of date or that new versions have been released.
I was on wootique 1.3.1 - did a manual update (downloaded the theme again from woocommerce.com, deleted old theme and uploaded to themes directory again) and it works fine.
Guys, you really need a "one-click" update option for themes as well, just like you have for the framework. Or at the very least, a notification to let us know there is a new version out.
Otherwise people will have no idea.