When modules include config in their module/config directory, this is copied to the primary config store as part of the module install.
However, there is currently no process to repeat this when modules are updated. For Views this is going to be very important.
Let's say I have project.module, and it has a whole host of views. I update one of those views in the module, and then release that module. Users of project.module update. In the current world, if you have modified the view (i.e, it is overridden) then nothing happens. If you have not (i.e, it is "in code") then you get the new view as soon as caches are flushed.
This is a critical feature that allows us to ship views with modules and expect them to behave appropriately if the administrators have not changed them.