Is 1and1 too smart?

I typed in slightly wrong URL on one web site hosted by 1and1.com. To my great surprise I got the page like this:

Multiple Choices
The document name you requested (/XXX/XXXXXXXX/XXXXXX.XXX) could not be found on this server. However, we found documents with names similar to the one you requested.

Available documents:

* /XXX/XXXXXXXY/XXXXXX.XXX (mistyped character)
* /XXX/XXXXXXXZ/XXXXXX.XXX (mistyped character)

Now I'm thinking isn't this a bad attempt to be smarter than necessary? This may expose content by mistake.

UPDATE:
Vadim told me that this feature is standard in Apache. I didn't know. I also found out that it's actually in HTTP protocol rfc. Hm... I still don't like it :)