Yeah., I guess the layman's term of it, judging by users and developers on AT.Net, is that Vizio imaged an internal SD card within the storage and that's where Android is programmed to send apps. I think if you root it and install a custom ROM, that issue would be taken care of, but you probably lose more of flash space with reformatting the flash, because it will have new partitions. Again, layman's terms here!
This problem has appeared on SlateDroid, AndroidTablets, and I think I came across it on Amazon forums, too. I'm shy of internal memory problems right now, so that general consensus convinced me to say no.