I guess I don't care about the letter but it IS definitely confusing. Most of my friends think it is the g of google (because it was!).
As long as there is no lawsuit, nobody cares, but I don't think any judge would side with Kagi on this one, which is the shame cause, when that day will come (and it will come, trust big companies on that), Kagi will appear as a counterfeit to the public instead of a legitimate competitor and challenger, which, again, is a shame.
Is it a risk worth a debate on the letter "g" ?