Yes, the default instance is a terrible byproduct of importing the application through the upgrade wizard. Using the default instance was a VB habit in pre dot net versions because forms were always resident in memmory as a default instance, although you could also g=create additional instances.
As Parvenu74 said, it is not a best practise. That being said, you should be very careful when removing it from an imported application because of side affects and references where it might be being used. Your best bet is to not use it in new code that you develop and slowly migrate yourself away from the "converted" code over time. As was mentioned above the default instance stuff was re-instroduced in VB 2005, but it's use is highly discouraged.