I saw it was 'fixed' below, but it's an annoying side-effect of everyone using "blog.*" as a blog address, and all default blog software assuming that 'home' is /

WP4 will probably have a step in the install software saying 'should we link the default home to /, or if not, where should we link to?' and everyone will praise it as innovative, and sadly, given the state of blog software, it will be. :/