Open up the various folders of Adobe's software (on Windows). The DLLs are a mish-mash of all lowercase and upper-lower mixes. Heck, open up System32; the DLLs there are definitely not case-sensitive capable (`kbd*.dll' being one example). In fact, I bet you there's at least one program on your computer that accesses the Program Files using `C:\PROGRAM FILES (X86)' instead of `%programfiles(x86)%'. In fact, even environment variables aren't case-sensitive.
> many case insensitive hard drives would be copied into new machines and there would be millions of conflicts
I still don't see where you get a conflict copying the contents of a case-insensitive file system to a case-sensitive one.