No, it shows all apps, but shows you who signed or zapped the app. I don't think WoT filters the apps.
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Correct. If you choose to install an app for the first time, you will get an "are you sure?" type of message that shows whether anyone in your web of trust follows the publisher of the app, but that doesn't show up at all for updating.
It would be nice if @Zapstore showed WoT on the app information page prior to tapping "install."
Following your logic I assume you meant prior to tapping "Update"
What's the point of doing that?