Yes they're German... and they probably don't have as much money as, say, Apple to spend on proper marketing and PR. Reminds me of the "Engrish" crap Cowon used to write in their ads, or even on their players themselves.
This is certainly the most unfortunate named player ever, and there is no cure for stupidity - but definitely no excuse for Gizmodo going all high-and-mighty PC on them, and demanding an "excuse"... it just sounds a bit overly hypocritical from an electronic gadget blog. IMO.
Anyway, this is the best naming suggestion: http://gizmodo.com/gadgets/seriously...5.php#c2234743