Take files under /boot/EFI (FAT). Packaging systems fall down on such — two RPMs can have different cases of the same filename and the package manager won’t know. They’ll just subtly overwrite each others file depending on installation/upgrade order.
(And why should the package manager have to care about the case sensitivity of the underlying file system for each managed file?)
However, case-sensitivity is user-unfriendly. README.DOCX, Readme.docx, ReAdMe.DocX -- which document did they really want? When Jane Doe calls and tells John Doe to open the "readme" document, which one does she mean?
https://en.wikipedia.org/wiki/Ascii85
that last would be clever but unwise to write to the filesystem
Recent news of Linux also considering removing the drivers for it: https://www.phoronix.com/news/Linux-2025-Sad-State-HFS