This seems to imply it’s only the web interface. The clients only see the name in lowercase, too. (Firefly svn-1236 Win32.) For example, “Big Time.m3u” appears as a playlist called “big time” on clients instead of the correct “Big Time”.
When selecting this Playlist in iTunes or SoundBridge via Firefly causes 0 items to be returned.
One common use of the M3U file format is creating a playlist file that contains a single entry pointing to a stream on the Internet. The created Playlist provides easy access to that stream from standard media player products.