Yeah a lot of registrars do this... if you read the fine print in some you'll see they aggregate domain search data and sell it...
I'm sure they have a "logical reasoning" such as 'we register it immediately so it doesn't get snatched up while our customer is considering it'
I'm glad I switched from them... paying $xx for domains was ridiculous, but I did prefer their SSL... I just got locked out of too many domains so I switched...
"Yes, hello? I'd like to switch my dns from your expensive unreliable hosting to my boxes here..."
"Oh ok, we'll need a blood sample sent to our office in the Czech Republic, can I get your credit card number?"