Part of being "Visible to Client" means that they should see it. The distinction that they should not see it on the client registration order form if it is disabled may not be what most people expect. I'd be curious to hear what people think about this, or if it's preferred to have a new setting to make that distinction. I'd recommend opening a feature request for this.
As for the original bug report, I'm going to close this thread as not a bug.