Python 2 did have the issue where list comprehensions (though still not generator expressions) didn't introduce a new scope, and so you could indeed get issues quite similar to your example above. This was corrected in Python 3.
All that said, I will agree that Python's scoping rules are pants-on-head crazy. In very nearly every other programming language under the sun, you declare variables at the point where they exist. In Python, you declare a variable when it exists somewhere else (and you then want to reassign it). This does mean that you don't need to put a "local" or "var" or what-have-you in front of each new variable you declare (which is basically the reason Python did it this way), but the semantics of the thing can take some getting used to.