The SD card is intended for photos, videos, music, etc. Apps are not installed on the SD card. They are installed in the phone memory where the OS resides. This is necessary for apps to run. Think of it as similar to a PC or laptop. On a laptop if you put a SD card in the card reader slot software does not install there nor do you expect it will.
Your phone has only 4GB of memory. This is very minimal these days as that space must hold the Android OS, apps and some other misc stuff. You can imagine that it's easy to use up so little memory.
There's really nothing to be pissed about. It's not a problem with Android, it's just the limitations of the phone hardware. You simply got what you paid for. Sorry.