Yeah, I've seen so many misspellings that I considered collecting them. It would of course be better if the English-speaking people could get over C being pronounced as K and just accept Čech, but that's a pure fantasy.
It's weird that they generally understand that "cz" is pronounced as /č/, but they still screw up when writing "Czech". Sometimes it seems as if they were all just barely literate.
I like how the legend conveniently ignores the existence of south SlavsOr is there brother Serb somewhere?
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In my experience, the opposite is true when spelling and the "Cz" is an issue (that "ch" is not that uncommon, such as "chemistry" or "mechanic" but "cz" is rare and I can't think of another word right now that isn't a name). I think a lot of people learn the pronunciation of "Cz" more easily because there isn't any alternate english pronunciation, whereas "ch" has 3 English pronunciations.
With regards to Canada it is kind of odd that that was selected as the name instead of something neutral. But the truth is that nobody really cared about New Brunswick and Nova Scotia even back then, with things like the selection of Ottawa as the capital done to keep Ontario and Quebec happy (hell, Nova Scotia only stayed in because London wouldn't let them out).