I have seen confusion with this aspect of account configuration numerous times. Perhaps simply adding a note next to the email field indicating that the email address is only visible to the administrators would help solve this problem.
Perhaps it is for building social capital - accustome users to help each other.
Just like in a related way - but with a different morale - SMS seems from one point of view an inferior user interface. But people use it anyway instead of calling.
Anyway - I suspect he just has not come around to fixing it.