I got a bag from the ettin-goblin camp quest.

It has 80% weight reduction for itself, not what you put in it. Is it ment to be for only the 1 lb the bag is or is it ment to be like a bag of holding?

Magic bags are fairly rare; lightweight containers are far more common, so unless the quest's creator says otherwise this looks like the intended item.

It's info: Stitched together from old goblin hides, this bag takes the weight out of a heavy load.

To me it implies it as a holding bag, just a useless bag than otherwise.

As Scotty says, it's a mundane container with a lighter personal weight.

But, even the mundane bags have their uses. Especially the ones with weight reduction, when it comes down two a couple of pounds.

Well, whoever made the quest should get the final say, so I'll wait for that.

Yes, sir.