I suspect it was an accident.
So they have the i.beat, and here's my interpretation of the design guy's conversation:
"So we have some nice colour schemes, but we need something darker for the emo's."
"They like black, right? Black's cool."
"Yeah, but the word 'black' is so boring. Add 50% more 'Street'"
"Blak?"
"Sucks, 10% more 'Techie'."
"Blax?"
"Not bad, but it's missing something. Gimme another 8% 'Script Kid'."
"Blaxx?"
"Sold."
I guess it was only when they started actually sending descriptions to people that it became apparent.
Subject: New i.beat player!
Message: I want the best Mp3 player in the world. I want a high quality music player that has plenty of bling. I want a device that has street cred built in. Where do I get it?
i.beat blaxx...hold on, wait.
Dude, we can't call it that.
What do you mean 'nobody will notice'?
I don't care what our marketing budget was, the law suits will cost more. Tell you what, we'll cover our losses by firing those design morons.
--- End ---
The moral of the story? Double check everything