My bad - I was under the impression that all hfsplus volumes were case sensitive. I just did my homework on hfsplus, turns out that OS X now defaults to non-case sensitive variant of hfsplus at the filesystem level, and my filesystem is NOT case sensitive.
There are still situations where case matters, which is why I was having the tab completion problem. I'm pretty sure there are others, but I can't remember a specific situation right now. I'm guessing this relates to Unix underpinnings and earlier versions of OS X which were always case sensitive...
BTW, Following your steps did not change the actual filename case, only the folder case.
Doing testing with the CLI afterward I validated that case didn't matter for directory navigation or calling the file for ebook-convert, it only mattered for tab completion.
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