It is not the terminal, it is the file-system. Or in the case of cd (cd is a shell built in) the shell, that is case sensitive.
It could have been possible (at least with ASCII), to make is case insensitive. This is harder with the now used unicode (whether two characters are the same, may depend on local).
#What to do about it
What to do about it
- Live with it.
- Try these shell options. They give a compromise, and make things easier, without introducing all of the problems of case insensitivity.
shopt -s nocaseglob#this is in my~/.bashrcshopt -s nocasematch#this would also be in~/.bashrcset completion-ignore-case on#this is in my~/.inputrc