I expected:
1
2
3
4
5
Update:I understand what is going on now. Thanks for the clarification kundra.

Another Update:I just want to make sure that I understand this. In the "foreach" loop $each is assigned a reference to a scalar value in @list. So when $each is modified in the loop what is actually being modified is $list[$i] which happens to be same value as $newlist[$i]. Right?

Good Hunting,
kha0z