Yeah the multiple formats one is intentional, for example you can have both rich text and plain text too, that's how programs don't barf when trying to paste text from elsewhere.
It actually goes all the way back to Windows 1. The original idea was basically the Unix philosophy but in GUI form: each program was good at handling one task, and they communicate with each other through the clipboard (much like the pipe does on the command line in Unix). Just look at this presentation (skip to 3:29 if needed), dBase handles a database but can copy an entire field into Write as text, Chart can generate a basic pie chart but not much more but it can copy that chart into Paint as an image (which you can use to make it prettier). Write then can also take the image from Paint to embed it into the document (and if you didn't care about making the pie chart pretty, you could just copy from Chart directly into Write, again as an image).
Kind of amusing how we settled on mamooth programs that try to do everything on its own instead when that was the very thing Windows was intended to prevent.
Don't pay much attention to "the hedgehog" in my nick, it's just because "Sik" was already taken =/ By the way, Sik is pronounced like seek, not like sick.