Whether or not it did enough people thought it did for it to get really popular, and then when those features went away get significantly less popular. I never used it but judging from how its popularity rose and fell: probably.
Probably, considering that it was enough to get the company to the point that it could go public. And for the company to lose 54% of its "value" after changing it.
You joke, but gmail does this with dots in email. There is no difference to gmail between fartmaster@gmail.com and f.a.r.t.m.a.s.t.e.r@gmail.com. Not really any dragons here, but can create confusion if you're unaware.
What is this mythical video game system that doesn't use power itself?