Content Type with default options: "Published" and "In moderation queue" = confusing

For any particular Content Type settings ( content/types/content_name ) the default options in the Workflow section allow to set "Published" and "In moderation queue". This results in content that is Published (therefore publicly visible) but with the message "The post has been submitted for moderation and won't be listed publicly until it has been approved." These are mutually exclusive.

Can this module be a bit more idiot proof on this issue? For instance, if something is put "In moderation queue" it should not be "Published" until approved, even if the default setting is "Published".

Please correct me if this is by design.