Update schema after the release.

Hello there,
i've some issue in finding the best way to get rid of this.

Consider this scenario:
- module is released in version 1.0
- developement stream that leads to 1.1 needs a completely new db schema
- i add this schema in hook_update_n
- i also update my hook_install, so that a fresh install gets the most updated db version

Now, 1.0 modules running the update should be fine. What happens to a brand new 1.1 install, getting the correct schema from hook_install, and then running the hook_update_n which tries to create an already existing table (i mean, what happens other than an sql error)?

Is it this the right way to go?

Thank you.