We are using JIRA 6.2-OD-01 (OnDemand) - we have:
1) Admin>System>"Allow unassigned issues" - set to ON.
2) Project>Roles>"Default Assignee" - set to Unassigned.
When creating an issue it shows the Assignee as "Automatic". This is very confusing - because how can our end-users know what the "Automatic" field will assign to? True - it works - that if the issue is created as automatic, then it will set the field as Unassigned - but the user who is creating the issue should see "Unassigned" so they know they are going to create an issue that will remain unassigned (rather than seeing "Automatic" which they have no idea what the admin-set automatic value will be).
The display of "Automatic" should be removed - and rather the value that the Administrator has set for "Default Assignee" in Project>Roles should be displayed.
An end-user has no idea what "Automatic" means.