Originally Posted by
OLDYELLR
You're not the only one who has wondered. But this is a feature of many high end frames. Usually the cutout features the logo of the maker. There should be a bellows inside to protect the bearings and axle, maybe contain grease. It still does not prevent the inside of the bottom bracket from rusting, but it does let water drain that could come down through the seat tube.
I guess my surprise at this feature comes from never having owned a "high end frame" before. I for sure see the bellows inside the hole, I had no idea what it was, looked like a coiled spring! Thank you for the knowledge OLDYELLR, I like your handle, it is one of my (joking) pet-names for the missus.