When twitter was new and fresh, I could see this happening... there was a time when more people had heard about TWIT than twitter... but those times have changed, now I'd assume it's many orders of magnitude that people have of twitter and no clue that TWiT exists or has ever existed.
Maybe twitter could just buy them out and make them a part of the core service somehow - everyone can get money and press and benefits.
Guess the lawyers make money either way.