It's the way Android treats SD cards and the hack job of supporting internal and external storage. On an Android phone, the SD card folder (/sdcard) actually points to the SD card. On the eDGe (both versions), the SD card folder is a redirected link to either the internal storage (/intsdcard) or the SD card (/extsdcard). Most Android programs don't look anywhere except the user area and /sdcard Only apps that allow browsing the entire file system will see the actual SD card unless you move the library to the SD card.
Yes, it is a dumb way to do it and there better ways it could have been implemented.
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