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I hadn't heard about the Omega issue before. Marvel were relying upon a piece of federal legislation called the Lanham Act. It effectively stops people from using unregistered trade marks which have a strong reputation in them. Its much weaker than having a registered trade mark (Trade marks are the crown jewels, because they're easily enforceable and they're assets on your company's books). Marvel probably asserted that there was a real risk of confusion amongst members of the purchasing public that Marvel's Omega would get mixed up with Northstar's Omega.

There was a certain element of bluff to it, though, because to prove it Marvel would have to go out and do a survey of comics fans to prove the reputation in their unregistered Omega mark was strong, and to prove the confusion. That can be very difficult to do, and extremely expensive. I personally would have told Marvel to get lost, but who wants to fight Marvel in the courts for years?
Yeah, DC and Marvel have used this for a number of years, mostly on small fries who can't afford to challenge it. (I do recall an instance, though, of DC preventing a hospital from having Batmobile written on it with a bat logo.)

I always thought Amok/Amuck would be a good name for a psychotic speedster.