Apple either doesn't check or just doesn't care; see "iTV", "iPhone", and "IOS".
At this point you cannot go to market with the existing name. If you think your app is worth less than the cost of changing the name (really?) then admit to yourself that you weren't serious anyway and abandon it.
It's the fact that I thought I had made my intentions very clear of my intent to use the brand with Apple through iTunesConnect. Apart from releasing it I did everything else. Just feels like Apple didn't even care to look and it makes me question developing for their platform.
I kinda thought that the whole iOS platform was perfect for the little guys without needing the hassle of the cover your ass lawyers. Guess I was wrong, lesson learned the hard way.
Oh, and Apple is great for us small guys, the same way Paypal is. It's great, unless/until they decide to stomp on you and crush you, then it's not so great.