Yes will confuse a lot of people, especially if they are not native english speakers. In general the more coins will appear, more confusion will be. Imagine, hundreds of new alt coins launched, maybe sponsored by some corporations or groups etc It's similar to domain names, first we had .com, now ICANN approved a lot of new TLDs for everyone, .ny, .bcn
http://newgtlds.icann.org/en/program-status/application-results/strings-1200utc-13jun12-en, ... why not .bitcoin
The difference, .com domain name had time to establish on the market, but the bitcoin... not sure, the chinese could create their own bitcoin, the chinese bitcoin to use in China etc
They can creat a new alt coin stronger than bitcoin, if they have money and power, support from the media, why, because all people that lost the bitcoin boat want a new chance to get rich.