Hi,
At any session for liveupdate only one revision is downloaded. Be it SEPM or SEP client. SEPM, can store multiple revisions and thats why it can provide multiple revisions.
You can control which revision the clients should have by going into policies->LIveupdate Policy-> LIveupdate Content Policy.
The main purpose behind having multiple policies is to provide a scalable security solution. So, if we see that a particular revision is corrput, we switch to an earlier revision untill a new one is released.
Aniket