This is a feature, not a bug. In the early days of computing people used teletypers for interactive work. These devices had only upper case or only lower case letters. So if you enter your login name in upper case letters, it is assumed that you have only upper case.
Teletypers were heavy character devices receiving data over a serial line at about 50 bit/sec. Only 1 character was buffered. See http://members.aon.at/oe1-100470/wago13.htm for some nice images.
BTW, the end of line sequence in DOS (CR-LF) is a feature introduced for teletypers, too.
On a Carriage Return (CR) the carriage, a pretty heavy piece of hardware, was pulled back by a big spring from the right edge to the left edge of the paper. This took more time than receiving the next character. But fortunately the Line Feed (LF) could be executed while the carriage was still on its way, so its "CR-LF".
Something like LF-CR would not have worked.
Regards
Harri