BUG #1504: Wrong user is used for sequences through rules

The following bug has been logged online:

Bug reference: 1504
Logged by: Nicolas Rachinsky
Email address: nr(at)rachinsky(dot)de
PostgreSQL version: 7.4.7
Operating system: FreeBSD 4.10
Description: Wrong user is used for sequences through rules
Details:

As the user (nicolas) owning the database (webtempl) I execute:
DROP TABLE log CASCADE;
CREATE TABLE log(
id BIGSERIAL PRIMARY KEY,
msg TEXT NOT NULL DEFAULT ''
);

DROP TABLE log_insert CASCADE;

CREATE TABLE log_insert(
msg TEXT NOT NULL DEFAULT ''
);

CREATE RULE log_ins AS ON INSERT TO log_insert
DO INSTEAD
INSERT INTO log (msg) VALUES (NEW.msg);

GRANT insert
ON log_insert
TO web;
----snip----

Now as user 'web' I try the following:
webtempl=> insert into log_insert (msg) VALUES ('foo');
ERROR: permission denied for sequence log_id_seq
webtempl=>

It works after executing the following as the user owning the database:
GRANT update
ON log_id_seq
TO web;
---snip---

As user 'web':
webtempl=> insert into log_insert (msg) VALUES ('foo');
INSERT 1078083 1
webtempl=>

As I read
http://www.postgresql.org/docs/7.4/interactive/rules-privileges.html the
insert should
work without granting the update privilege.

version
----------------------------------------------------------------------
PostgreSQL 7.4.7 on i386-portbld-freebsd4.10, compiled by GCC 2.95.4

Thanks,
Nicolas