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I enchanted 2 items to epic rarity and then removed all enchantments. Later I had a full inventory and sorted all items (or switched pages) the item rarity of the icon (see picture) would be any rarity above normal, but not legend.
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It is determined by the color of the item you clicked before clicking it. Clicking a legend then returning to the item with no affixes will indeed result in it appearing as a legend.
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Seconded. Easily reproducible, Samsung Galaxy S3 i9300, Android 4.1.2.
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Is it patched in 1.4?
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As of yet no… I will quote you in a bug report momentarily.
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