I cannot find the article where I read it, but this was done in part to save space, and as you discovered, it's still a 1/4 hex. Acknowledging this deficiency, they do sell an adapter for proper 1/4" bits:
http://www.amazon.com/Leatherman-931...dp/B0022G72BK/
but it's nowhere near as cool or cheap as something you make yourself.

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