When creating a new Gradle project in Eclipse Neon, why does the Gradle wrapper version default to an older version of Gradle?

Question

I'm new to Gradle (but I'm familiar with Ant and Maven), and I tried creating a new Gradle Project with Eclipse Neon.

For the Gradle distribution option, I chose Gradle wrapper as Gradle documents seem to suggest this is preferred (and it is the default). However, when I click on Next, I see that:

1. the Gradle version being used is 2.14.1 instead of 3.2.1 (which is what was installed when I ran brew install gradle); and
2. I get a warning that some functionality won't be available because I'm using this older version.

So…

1. Should I not use the Gradle wrapper option and instead use Specific Gradle version?
2. Or, should I configure Gradle/Eclipse somehow to use the correct Gradle version, and if so, how?
3. Or, is there something else I should do, and if so, what?

---

Here is the output from gradle --version:

------------------------------------------------------------
Gradle 3.2.1
------------------------------------------------------------

Build time:   2016-11-22 15:19:54 UTC
Revision:     83b485b914fd4f335ad0e66af9d14aad458d2cc5

Groovy:       2.4.7
Ant:          Apache Ant(TM) version 1.9.6 compiled on June 29 2015
JVM:          1.8.0_102 (Oracle Corporation 25.102-b14)
OS:           Mac OS X 10.12.2 x86_64