Drag files/folders out of an ZIP file
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When I drag a folder out of an ZIP file and drop it onto my desktop, 7-Zip extracts the folder into the temp folder and then copies the folder to my desktop.
I think it is not necessary to extract files to the temp folder first. Extracting files directly to the destined folder (my desktop) saves a lot of time.
I think this is not a bug. This behavior is explained in http://www.7-zip.org/faq.html
Other archive managers like winzip and winrar doesn't work like that and extract directly to the folder when drag n drop. There must be some way to make it work, grab the path somehow.
Are you sure about WinRAR?
For example try to extract same file from winrar to explorer twice, wait "Replace" window and check system temp folder.