"Worst case analysis" is a standard term of art in computer science, that shows up as early as second-semester programming, and Eliezer will be better understood if he uses the standard term in the standard way.
Actually, in the context of randomized algorithms, I've always seen the term "worst case running time" refer to Oscar's case 6, and "worst-case expected running time" -- often somewhat misleadingly simplified to "expected running time" -- refer to Oscar's case 2.
A computer scientist would not describe the "omega" case as random -- if the input is correlated with the random number source in a way that is detectable by the algorithm, they're by definition not random.
A system that reliably behaves like the omega case is clearly not random. However, a random system such as case 2 may still occasionally behave like omega, with probability epsilon, and it is not at all unreasonable or uncommon to require your algorithm to work efficiently even in those rare cases. Thus, one might optimize a random system by modelling it as an omega system, and demanding that it works well enough even in that context.
One of the most interesting debates on Less Wrong that seems like it should be definitively resolvable is the one between Eliezer Yudkowsky, Scott Aaronson, and others on The Weighted Majority Algorithm. I'll reprint the debate here in case anyone wants to comment further on it.
In that post, Eliezer argues that "noise hath no power" (read the post for details). Scott disagreed. He replied:
Eliezer replied:
Scott replied:
And later added:
Eliezer replied:
Scott replied:
And that's where the debate drops off, at least between Eliezer and Scott, at least on that thread.