Overall these changes are awesome and ULS is coming along beautifully, but I agree with Timo on the upper/lower case issue.
Sentence context is different from title/list view, in the latter it should be ucfirst'ed unconditionally (like we do in interwiki lists), whether to use the ucfirst algorithm of the interface language or the language name is another but it should be ucfirst.
+1. Please use sentence case in lists to make them scannable and aesthetically pleasing :).
Similarly, I don't see why "français" should be lower-case in the menu after the language is selected. Every other menu item in the UI has the first letter capitalized, regardless of in-sentence word case.
Erik