This is normal. Windows 7 will make use of any available memory by preloading it using "Superfetch" with what it thinks you will need next to help speed up performance by having it ready to go from memory on the fly instead of having to load it from the hard drive each time as requested. If you do not need it, then it will just dump it from memory when it needs the memory for something else automatically. Superfetch learns as it goes to help determine what and when you run and open stuff to help better improve what it loads in memory as well.
Also another side note, the kernel will use up all of it's 200mb? Idk how large the win kernel is actually lolz but it will load the kernel into ram when your not doing something just to make things smoother. It should load most of the OS's stuff into memory when your not being to active as that's how you get such a 'snappy' response from the system as well. That should take up to 500MB-1G of ram as well.
The free mem reading,, is what is not being used at all by anything, but available for use if needed.
Could this be concidered wasted memory? in a way, yes. But, if for some reason, something needs it, it is there to be used.