Recreating Filevault Account Picks Up Old Home Folder

I created a FV account under 10.6.8. After I logged into it and fiddled with some things, I decided to delete the account and recreate it. I did so, selecting "delete the home folder". When I recreated the account with the same name, the "deleted" home folder came back, complete with wallpaper and installed applications. Why? I mean, obviously because something was not deleted, but why wasn't it and where was it? I restored from CCC so no worries, just curious. Seems odd.