Does that really not work by default? I would figure it's only an issue if you have your disk formatted as case sensitive, which is usually a bad idea because a lot of devs don't test on it.
No, case-insensitive auto-completion doesn't work by default on OS X. For example, `cd /appli <tab>` does nothing by default (it's not finding `/Applications/`) even though my disk is formatted case-insensitive. However, after adding `set completion-ignore-case on` to my `~/.inputrc` file, I can now type `cd /appli <tab>` and it will auto-complete to `cd /Applications/`.
By default OSX's HFS+ volume is configured to be case-insensitive, but case-preserving. So, the filenames will preserve the case, but the filesystem doesn't distinguish based on case. It makes for interesting bugs.
Also set up case insensitive completion, saves the extra shift press for all those Mac paths.