Don't worry too much about what happens locally on the dev server.
i) It's just part of the demo, it serves you back the file you just uploaded because of this line:
res.sendRedirect("/serve?blob-key=" + blobKey.getKeyString());
ii) The first would I guess be the file you've just uploaded, the second would be the local copy of mySQL the dev server is using to emulate the datastore itself. Try comparing sizes to the original file you uploaded?
Once you have stored the file you have to access it via the api's provided, what form and where the file is actually stored no longer matters.