I don't think this behavior is expected. When I've tested it, I was able to get DNS to behave in the expected manner. Apple does make design decisions that can be frustrating, but in most cases I find 1) there's a way to work around it or 2) the decision was the lesser of two evils.

Absolutely love GOS as well. What are you using for your DNS server?

I run Unbound on my server for DNS.