it is misleading to market the device as 16gb and not make it clear that only 9gb is available to the user. without an sd expansion card the phone with 9gb wouldn't get the time of day from me. 9gb is piddly and high resolution display and other features wouldn't make up for it imo.
that said, this is par for the course with virtually all smart phones. they don't clarify what is actually available to the user.
the only redeeming factor is that they say they're adding a free sd card, but don't say what size it is. fortunately for them users can add a 16gb sd card for about $10 or a 32gb for about $20.