No, case-insensitive auto-completion doesn't work by default on OS X. For example, `cd /appli <tab>` does nothing by default (it's not finding `/Applications/`) even though my disk is formatted case-insensitive. However, after adding `set completion-ignore-case on` to my `~/.inputrc` file, I can now type `cd /appli <tab>` and it will auto-complete to `cd /Applications/`.
By default OSX's HFS+ volume is configured to be case-insensitive, but case-preserving. So, the filenames will preserve the case, but the filesystem doesn't distinguish based on case. It makes for interesting bugs.
