Content Type is not updated when Node is changed

First thing to note, is that I do not know where this problem lies. So the Component indicated could be completely wrong. But it does have to do with Nodes/Content and Content Types.

The problem when Content is created as a particular Content Type, the Content Type is not updated as it is changed in the system.

For example:
- Create a Story.
- Once created, edit the new node and add it to a book (or even create a new book with this node).
- Go to the Administer > Content management > Content page. Observe that the Type is still Story.

This problem occurs for any scenario, including creating a new Book Page with the new node as the top of the book. Then removing the Content item from the book. It still stays as a Book Page.

There should really be a way to easily convert between the different Content Types as it is likely being done quite a bit within the Drupal community.