Your guess of why this happens is correct. However, it is not a bug - it is 
intended behavior and cannot be done differently.

I mean, come on. The application contains a resource that states in which 
category it should go. So, when it is installed on the device (no matter 
whether directly or because it was temporarily copied from the card), the 
Launcher has to create such a category, if it doesn't exist, and to put the 
application there. What else could it do?!

If your users don't like the category you have assigned to your application, 
don't assign it any particular category.

Admittedly, an intelligently-written Launcher probably ought to remember 
somewhere that it created a new category only as a result of making a temporary 
copy of an application and delete it after deleting the application. After all, 
it *does* remember that the copy of the application is temporary, because it 
deletes it after the card is unmounted. However, it seems to be a design policy 
that the Launcher never removes categories unless explicitly requested by the 
user - no matter why they have been created.

In any case, I wouldn't call this a bug. It's a design that you might not like 
- but it is intended behavior.

Regards,
Vesselin
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