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It is both documented (http://docs.python.org/dev/library/argparse.html#argument-abbreviations) and an important feature.
I thought there was an enhancement request in this tracker for making the behavior optional, but I couldn't find it when I looked, so I'm turning this into one. If someone finds that there is already another issue this one can be closed as a dup.
I'm marking it low priority, though, because I think most people want the ability to abbreviate the option names.