Plan Explore v2.7 (220.127.116.11) Estimated Row Did Not Multiply the Estimated Execution in Nested Loops Inner Child
In case you're interested, SSMS happens to get the estimate correct (hence no difference seen in PE) because of a separate plan bug with lookups that I wrote about here. In effect, the bug cancels out the usual wrong behaviour with lookups, resulting in a correct estimate (so two wrongs do sometimes make a right!)
This bug messed with PE's normal nested loops rewrite, hence the row counts in the demo 7 graphic are too large. SQL Sentry updated PE to account for the new plan bug as soon as I reported it. The fix was released in build 18.104.22.168, released 31 October 2012.
So there you go, you're not seeing things or going mad 🙂