Yep.
That the container will choose the servlet-mapping over the static file is the basis for a common work-around for creating a "Welcome File" servlet.
Some containers (older versions of
Tomcat) wouldn't allow you to use a servlet as the welcome file. By creating a mapping for, say.. "index.html", putting a blank index.html page on the server and then setting "index.html" as the welcome file, you're able to use a servlet as your intro page.