If you regard isset() as indicating whether the given variable has a value or not, and recall that NULL is intended to indicate that a value is _absent_ (as said, somewhat awkwardly, on its manual page), then its behaviour is not at all inconsistent or confusing.
It's not just to check for uninitialised variables - a lot of the time those are just due to sloppy coding. There are other ways a variable could fail to have a value (e.g., it's meant to hold the value returned from a function call but the function didn't have a value to return) where uninitialising the variable would not be an option nor even make sense (e.g., depending on what was to be done with the returned value).
