The ST7735 has a bidirectional SDA pin which goes through IC1. This is unidirectional.
The MISOB line from the SD card goes through IC3. The 3-state is hard-wired to permanent output.
The ST7735 can not be read.
The SD card will cripple anything else being read on the SPI bus.
Most people, most of the time, use display and SD. Which works fine.
If you want to add other SPI devices, you will have to modify the hardware. e.g. connect the 3-state control pin to SD CS.
Yes, I agree. It is a bad hardware design. They should have connected the /OE to /CS of the SD.
Or simply used a 1k series resistor instead of the 74LVC1G125 buffer.
You will find many design "features" as you go through life. It is not uncommon with Ebay items. I am very surprised to find it with an official Arduino product.
As I said earlier, most punters will not have multiple SPI devices.
There are plenty of other ST7735 displays on Ebay. Most of them require 3.3V logic. So it is up to the User to provide level shifters with a 5V Arduino.