The 16GB of the phone memory is split, some of the 16GB is not there for the same reason you only get 14GB on a blank 16GB microSD, the some is taken for the Operating system, then the rest is split in to two pieces, I think 1.8 or 2GB is in one place and reserved for applications, and the leftovers are for storing pictures/music/video.
I'm just glad that for the external microSD card folder they stuck a small card icon on the folder, the phones music/video data storage area is called sdcard lol and it is indeed strange.