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That is correct. There is a bug in the code that has been of low priority because (I reckon):
1) Users are not often created through the administration area
2) It works, when editing
I think there is a bug issue at sf.net about this, but I think the core devs should focus on the larger works than this small bug (not insinuating that you have done anything wrong by pointing this out, just giving my opinion that it is too minor to do anything about - unless the core devs find that it is a bad signal to send and that they have time to fix it)
"When you can flatten entire cities at a whim, a tendency towards quiet reflection and seeing-things-from-the-other-fellow's-point-of-view is seldom necessary."
Cusix Software
