You're unfortunately right. I say unfortunate because I really, really like the name: it sounds good and conveys their mission very well, but ease of spelling is probably paramount.
(I know this is like planning where to put the swimming pool in your 1 bedroom apartment in the event that you win the lottery but I think the choice of name does/did have a lot to do with just how long the view of the founders was when they started.)
That said, it is currently my only quibble. I'm glad to see that things actually got done and out the door. It sure seems to have gone a lot better than anything I worked on this summer.
The whole idea is to allow the Facebook-bound multitudes to leave that particular kingdom and spread -- along with their data -- across the Internet, as a decentralized system.
The name is therefore the goal, the intended result. It's a high bar, but it's an ambitious project.