Hi Know what you are saying
storage for music & pictures total when viewed on computer (phone set as disk drive) is 98mb
the storage left roughly 980mb (.98Gb) is used for apps.
you can check this by going into app manager and checking used and available space it means you have no need to move apps onto sd card.
Hope this helps HTC are not clear on storage I think they assume most folks want app storage. to be honest I use a 16gb micro sd card and leave apps on phone.