I remember it back in the day as fully capitalized.

Now that the TorProject has opted to correct the record, it is too little too late. Most presentations at the time did use "TOR" and it was called the TOR router. Even they understand the acronym comes from the original onion routing project from the Naval Research Lab.

All that to say, I don't know why they would try to distance themselves from what it was, and what it still is.