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The base eclipse has changed from ME 7.5 to ME 8.0. You cannot directly upgrade from ME 7.5 to 8.0. The recommended approach is to install a fresh copy of ME 8.0. You can either download the installer of ME 8.0 from the download site(http://myeclipseide.com/index.php?name=Downloads&req=viewsdownload&sid=36) or use pulse.
Yes, you have to install the plugins. You have the option to import preferences from ME 7.5 to 8.0. Open ME 7.5 IDE, from menu options click on File > Export > General > Preferences and you can import these preferences to your ME 8.0 IDE.