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Yes this is the normal and expected outcome of the technology we used to make the download/install process relatively easy and painless. While you can move the file and it would work for the most part, any website that uses a flash launcher for their eBooks (such as the ADE Library http://www.adobe.com/products/digitaleditions/library/ ) would not recognize ADE as being installed and would force you to reinstall it the AppData location before launching, and henceforth run it from there. So while you could move it, you would end up in a running battle between which version would actually run. We are looking at producing a separate installer that would take care of some of these issue (important for running in a managed environment), but I don't know when that will actually make it into the product itself.
In the meantime your best bet would probably be to ask the folks at CCleaner if there is any way to exclude specific directories.
ps We're actually pretty proud of keeping the entire application size down to a single "crappy little 3mb .exe" file instead of inflicting you with massive bloatware.
We are looking at producing a separate installer that flv convert video would take care of some of these issue (important for running in a managed environment), but I don't know when that will actually make it into the product itself.