Yes it is expected. This is symptomatic of any case in which you have a throttled or capped connection. If you saturate your uplink it will affect your downlink and vice versa.
This is because the your connection's rate-limiting impacts the TCP handshake acknowledgement packets (ACKs) and disrupts the normal "balance" of how these packets flow.
This is very thoroughly described on this page about Cable Modem Troubleshooting Tips, although it is not limited to cable modems:
If you saturate your cable modem's
upload cap with an upload, the ACK
packets of your download will have to
queue up waiting for a gap between the
congested upload data packets. So your
ACKs will be delayed getting back to
the remote download server, and it
will therefore believe you are on a
very slow link, and slow down the
transmission of further data to you.
So how do you avoid this? The best way is to implement some sort of traffic-shaping or QoS (Quality of Service) on individual sessions to limit them to a maximum throughput based on a percentage of your total available bandwidth.
For example on my home network I have it so that no outbound connection can utilize any more than 67% (2/3rd) of my 192Kbps uplink. That means any single outbound session can only utilized 128Kbps, therefore protecting my downlink speed by preventing the uplink from becoming saturated.
In most cases you are able to perform this kind of traffic-shaping based on any available criteria such as source ip, destination ip, protocol, port, time of day, etc.