PG case sensitivity

Hello,

I am running into a problem with PGs case sensitivity with regard to column and
table names. I am using program components that require the object names
returned from database metadata queries to be in uppercase. Therefore, I am
forced to use double quotes in the table creation scripts, like

create table "BLA" ();

However, after doing that, all scripts that reference objects without quotes
fail, as PG seems to internally translate to lowercase in the absence of
quotes. I am forced to touch each and every column and table name in every
script. Questions:

1) can PG be configured to operate case insensitive?
2) why in the world was case sensitivity introduced at all? AFAIK, the SQL
standard explicitly states that names are case insensitive, and it seems to me
that PG goes against that standard. In fact, if there is no solution to this
problem, my conclusion will probably be to drop PG altogether, as we need DB
interoperability on the program and script level, and this is becoming
unmaintainable..

thanks,
christian