no, much of the sand has been washed down or away I guess, I think it's normal... we did refill it a little while back but it just gets washed away. you can see some of the pave-set in the last photo, it has cracked a little bit and come away where the pavers have moved.
the pegs were just there... the kids had been playing with them! not strategically placed or anything, though I'm glad you think they were and I prob shouldn't be giving myself away