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If I got this right than the following is the normal workflow in git. I normally fetch form a remote. After fetching I can compare the origin/master with my local master. When I have reviewed all changes I probably want to merge the origin/master into my local master. This is what a git pull does I think. When I fetch from egit and synchronize (using the synchronize view) the local master with the origin/master I see all incoming changes. When I click merge on the context menu it merges the incoming changes into my working tree but does not update my local master. I think it should update it right?
This is a bug, verified your scenario
Also, the "Merge all non-conflicting changes" icon does this: it merges on the working dir, but does not perform the actual merge. This could be seen as a feature, because you may "cherry-pick" only the desired changes without performing the whole merge (there's the "Pull" button for this), but it's confusing IMHO. Perhaps the "Merge all non conflicting changes" could prompt the use asking whether he/she wants to perform an actual merge or only a "local" merge.
