From what I'm told, S&W doesn't make their barrels like they used to - out of a single piece of stock. Instead what we think of as the barrel is now a sleeve and the actual barrel is a much thinner piece of steel, almost like a heavy tubing. Supposedly this allows S&W to make the barrels more efficiently and more accurately and there is less waste if a barrel is out of spec. The "barrel" is now a sleeve, like the earlier Dan Wesson guns and during assembly the S&W techs use a special wrench to secure the actual barrel to the frame along with the barrel-sleeve. The "cup" you see is to provide a neat, clean appearance to the muzzle.
If someone else has better knowledge please educate us.