Add 'package = Administration' entry in update_advanced.info

Yes, also for 7.x.

Yes please!

...better issue title might help.

this is not entirely correct as per Drupal standards

Why do you say this? https://www.drupal.org/node/542202 lists "Administration" as a value one might use for "package".

I guess this is why you said it is not correct per Drupal standards:

In general, this property should only be used by large multi-module packages, or by modules meant to extend these packages, such as Fields, Views, Commerce, Organic Groups, and the like. All other modules should leave this blank. As a guideline, four or more modules that depend on each other (or all on a single module) make a good candidate for a package. Fewer probably do not. An exception to this rule is the "Development" package, which should be used for any modules which are code development tool modules.

"Administration" is probably another exception to the general rule, like "Development". Other popular modules such as Administration Menu use the "Administration" package, despite not extending a base module or having codependent modules.

The documentation of the package property needs some clarification on this issue of using common packages for categorization of modules, in my opinion.

IMO, this module belongs in the administration category.