I am as well, but I also understand it is a very simple way of branding it and having everyone know, at a glance, that it's an Apple product.
As an example, if you asked an outsider to the tech world which brand makes the EVO, Nexus S, Veer, or iPhone, the only one they'd likely get right is the iPhone. This is a bit of a loaded example because the iPhone is super popular, but then ask a random consumer who makes the follow made up products, the MOVE, Slider, Jump, iThing and they know that the i prefix means Apple and likely wouldn't have a clue who makes the other things.
So anyway, it's a tad annoying, but it is also a dead simple, one-letter way of identifying the source manufacturer. It's quicker and shorter to write "iCloud" than it is "Amazon Cloud Drive" or "Google Music" and identify the source with most consumers. In this way, it's subtly brilliant.
I hate it as well but it's easy to see you're right as customers themselves go ahead and add the missing "i" in front of products. How many times have you heard people say "iTouch" instead of "iPod Touch" and "iTV" instead of "Apple TV"?
I can just imagine, if Apple's cash pile keeps growing, Steve Jobs buying Microsoft and doing nothing with it other than changing the name of Windows to iWin
I don't mind it when paired with a unique product name but do find it boring when paired with an every day word, iPhoto, iBook, iPad, iCloud. What's worse is that this one uses the 'i' and 'Cloud' together... my Apple fanatic marketer is going to have a heart attack!
'iPod' is perhaps unlike any of the others - even iMac - in that even though 'pod' is an everyday word, the resulting product name is almost completely opaque.