After changing default location, fields linked to that location do not show in profile

I noticed this issue on my own install of CiviCRM 1.6.8058.
I was able to reproduce the problem on the demo site: CiviCRM 1.6.8124.

Steps to reproduce:

Log onto demo site.
Check in Administration that default location is "Home".

Under Administration, create a simple profile with two fields.
Last Name (Individual); and
City (Primary Individual)

Note that I haven't explicitly selected "Home" for City. I have left it as "Primary".
Both fields are set to "Public User Pages and Listings" visibility. Both are set to "Searchable", and In "Selector".

I then use this profile to create a new contact.
http://demo.civicrm.org/drupal/civicrm/profile/create?reset=1&gid=N (where N is the id of the profile I just created)

I enter the last name and the city and click "Save".

This takes me to the "Contact's Profile" screen.

Last Name shows the name I just entered.
City shows the City I just entered.

Ok, fine.

Now, go to Administration.
In "Location Types", I set "Work" to be the default.

Use the two-field profile we just created to create a new contact.

I enter the last name and the city and click "Save".

This takes me to the "Contact's Profile" screen.

Last Name shows the name I just entered.
But, City is "blank".

If I search for this contact, in the search results page, the City column contains the correct City.
But click "View" and it is no longer there in City.

If I do a "full" search (not using the Profile) and View the record, the City is there, and Work has been set as the primary location, as expected. So it seems to just be a problem with the Profile "View" page.

This does not just happen for City; it happens with all location fields. I have just used a two-field example to make things simple.
When I set up the Profile, if I choose location to be "Work" explicitly and not "Primary", I do not experience this problem.