git branch merge bug (works in hg and bzr)

gistfile1.sh

>: git --version
git version 1.6.3.1
>: git init
Initialized empty Git repository in /Users/lut4rp/Code/tester/.git/
>: echo asdjhaskd >fil 
>: git add fil 
>: git cm 'initial commit'
[master (root-commit) 9983161] initial commit
 1 files changed, 1 insertions(+), 0 deletions(-)
 create mode 100644 fil
>: git branch new
>: git branch
* master
  new
>: git mv fil fila
>: git status
# On branch master
# Changes to be committed:
#   (use "git reset HEAD <file>..." to unstage)
#
#	renamed:    fil -> fila
#
>: git cm 'renamed to fila'
[master 9de0953] renamed to fila
 1 files changed, 0 insertions(+), 0 deletions(-)
 rename fil => fila (100%)
>: git co new
Switched to branch 'new'
>: git rm fil 
rm 'fil'
>: echo asjhdajkhsdkajhs >fila
>: git add fila 
>: git cm 'renamed, heavily modified'
[new 5914271] renamed, heavily modified
 2 files changed, 2 insertions(+), 1 deletions(-)
 delete mode 100644 fil
 create mode 100644 fila
>: git co master
Switched to branch 'master'
>: git merge new
CONFLICT (rename/delete): Rename fil->fila in HEAD and deleted in new
Automatic merge failed; fix conflicts and then commit the result.
>: cat fila
asdjhaskd                                  #### Still the master branch's content, `merge` apparently did nothing.
>: git show :2:fila 
asdjhaskd
>: git show :3:fila
fatal: ambiguous argument ':3:fila': unknown revision or path not in the working tree.
Use '--' to separate paths from revisions
>: git show new:fila 
asjhdajkhsdkajhs
ajksh askjdhaksdh kajshdk asd