Quite frankly, from what I've read (the blog posts only), this seems like a pissing contest that's got out of hand. Each side should back down, stop trying to use the internet to throw poo at each other and work it out. Merge, settle or ignore each other and deal with it when there's a good reason to. Neither of you will lose money if you just compete.

I agree with jrockway's points, especially on the sub par branding, they're both very standard names and that is literally your only problem. If you're all capable of starting up these companies, I'm sure you're capable of rebranding. Both companies should rebrand in my opinion, it's a matter of originality, which neither brand has and neither party has the moral ground to get litigious over.