I guess the tire is sort of a girdle for the tube.
Indeed it is, a tube can only withstand 1-2psi, a tyre typically runs 120psi or so.
That one is green, looks like a Michelin latex tube... they tend to be a little less uniform in construction than a butyl rubber type, which is probably the reason it bulges. The trade off is that they are supposed to provide less rolling resistance, but I'm a touch sceptical.