Iirc, the decision to make it case insensitive by default, unlike the RFC specifies, because of user experience when using names as user identity. Usually the UA (e.g., desktop or smartphone app) they do autocorrect to camel-case the names. So if one wants to dial alice, the app is changing it to Alice. It was also considered that having alice and Alice as different users to be unlikely desirable. Moreover, for telephone numbers, matching is the same.

In the context of random-gemerated alphanumeric user ids, it can lead to conflicts indeed. However, as this setting has this value for very long time, I would rather keep it as it is, because there were not many complaints about it in the past. Changing it may bring some unexpected call failures for existing deployments.

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