It would be interesting to know why it's this way.
I have Quick Office for my Captivate phone, and it seems to only be able to access Google Docs (online) or material on my SD card - I don't see an option to access internal memory.
Most Android phones come with an SD card nowadays, so it's possible that Quick Office didn't want to mess with internal memory and just assumed an SD card would always be present. Then they ported everything over to NC without any major changes. The "user only works off of the SD card" assumption MAY be fair for phones, but is definitely not for tablets.
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