I haven't tried it on my '05, but I'm still pretty sure if it works the same as earlier models as rob has said. The logic is - when you want it to defrost, you want to do it quickly, so it goes on full blast, if you don't want it full, then use it another way, such as holding (if that works) or using the up from feet logo thing on the right side and the manual adjust to set fan speed, (aka not auto).
Personally though,I love the Auto AC. Its gotten better with a few smarter revisions.
If you're a fiddler, and like to change things all the time, then its not for you, but if you're ok with leaving it alone it works fine. When you're pulling out of a spot, and you suddenly get fogging, or you're scraping ice off in the winter, its great to be able to hit one button and have defrost on max and the rear defroster go on.
And I'm biased, but I don't know why you'd have crap blasting, I keep my temp usually at 72, and as long as the external temp is somewhere between say 40 and 80, it never blasts, it just goes to a medium to cool/warm things up and then goes to low. I do recall getting lots of cold air if it was over 90 and sunny, but then I wanted it, because it was really hot in the car...
Seems to work as advertised, though I will admit, if you don't leave it on auto all the time, the controls can be annoying, but I think that's a fair tradeoff, as it is automatic climate control, manual mode is lacking.