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EUREKA!!!! I finally get why this happens! We teach our kids to do it as part of their summer reading program. Maybe it's an intimidation thing. Maybe an uppercase "I" in and around those other uppercase letters would scare little kids.
Arrgh.
A blog that discusses the improper use of lowercase "i"s in words that are otherwise all caps. Which is NOT silly! It's NOT!!!
(That's really asking for it, but this is a highbrow site, right?)
Send it already!