The point is that if they allow "God squad" to pass without comment, then they'll have to allow "Hot Dog Squad" as well. And then "Pho Squad" and "Grog Squad" will show up, followed by "Mop Squad" and "Pizza Squad" and "Gutter Cleaning Guy Squad". Pretty soon someone opens up a "Dork Squad" which is actually a Geek Squad competitor, but with the roads clogged with black and white and orange Beetles providing squad-themed services, there'll be enough precedent that it'll be impossible to defend.

That's a somewhat exaggerated scenario, but it's essentially the logic behind these apparently overly sensitive trademark defense cases.