Is the 'I' the issue, or is it the 'Pad' bit? Or the font? I mean Lenovo (and I*BM before them) make ThinkPads, and ASUS makes eeepads, and they don't have a lawsuit <currently>.
If ebox would change the appearance, would that mollify Apple? Maybe not. If they change the name to l (that's a lower case 'L', not a capital 'i')Fub with a font similar to Apple's, what would happen? Another trademark case, most likely.
I can understand that some company might want to tie in with another companies success and copy the looks, but what customer would believe that an IPad sleeve that he bought off a market stall for 8 bucks is actually a genuine Apple accessory?
I dislike Apple's attitude as much as the next man, to the point that I have, about 10 years ago, promised myself never to buy anything from them.
But if their only point of distinction is their trademark (it's not price, quality, creativity, or prominence is it?), then I can understand that they have to defend it with all their might; so I can understand what they do. It's a fashion fight. Paris would agree.
* An 'I', how cheeky of them.