I've figured out what going on and can now replicate the issue. Revit doesn't actually change the text in the database. It saves the text as-typed and applies some crap internal program that converts it's "status" to uppercase or lowercase case as you can see from the screenshot. Unfortunately, when text is originally entered into Revit using UPPER CASE the internal case-switching program fails.
The Revit All Caps is dumb tool that really can only change to UPPER CASE. The tool assumes that you've entered the text in lower case. Then, when you apply the program it does indeed change the text appearance to uppercase, and when the tool is re-applied, it will just feed you back what you originally typed in. This is why nothing appears to happen when you type directly using all caps. This behavior is very evident in the attached screen clip.
Even though this explains why that All Caps program is a dud, it doesn't explain why the Dynamo program doesn't work. In the screenshot from my original post you can clearly see that all the text strings are correctly coverted to lower case--then directly entered into the text note's text parameter--so you'd think that would result in the correct appearance. I think the problem must be is that my dynamo program doesn't change the "status" of the text note. Anybody know if that's changeable by dynamo or C#?
Revit text is very dumb indeed.
James
Dynamo, ens