If unknown -XX options passed to JVM from JDK 7u5 b02 then it only prints message about fatal exception:
/export/jdk/jdk1.7.0_05b02/bin/java -XX:unknownFlag
Error: Could not create the Java Virtual Machine.
Error: A fatal exception has occurred. Program will exit.

With previous builds JVM also printing information about unknown options:
/export/jdk/jdk1.7.0_05b01/bin/java -XX:unknownFlag
Unrecognized VM option 'unknownFlag'
Error: Could not create the Java Virtual Machine.
Error: A fatal exception has occurred. Program will exit.

Unrecognized options reporting works with any previous updates, JDK 1.7.0 FCS and with JDK 7u5 b01.

No information about unknown options printed using -XX:Flags=<file with unknown options> too.
That fact causing runtime/7110720/Test7110720.sh test failures:
http://vice.russia.sun.com/results/1.7.0_05/b02/vm/win2008r2-x64-32_hs/workDir/runtime/7110720/Test7110720.jtr