In that case it isn't the terminal (as a terminal's job is to handle input of text, and output of text). What you need to adjust is your shell; and in the case

In that case it isn't the terminal (as a terminal's job is to handle input of text, and output of text). What you need to adjust is your shell; and in the case of bash with file completion it already does equivalencies and ordering correctly for your LANG / LC_* already. Your problem is largely fixed already; it works fine on my case sensitive Linux machine and I am using the default Ubuntu bash settings.