Yes, by design because that way you don't need to use any force to press the bearing down most of the length of the spindle shaft. It only seats at the bottom.
People knock these G0704s for being POSs, but the design is pretty good. There are definitely some parts and fits/finishes that they go too cheap on IMHO. However, I also realize that they are trying to meet a price point and there is certainly an asymptote in the $ per unit of machining accuracy curve. I'm pretty happy to have a machine for less than $1,500 that can regularly cut parts to within a few thousandths or less. In order to squeak out those last couple thousandths costs a lot more money. So far, none of my garage creations has required such machining precision, and if it does I could probably manually machine/measure/machine those parts to get that tolerance.