Character-level recurrent neural networks are attractive for modelling text specifically because of their low input and output dimensionality. You have only so many chars to represent - lowercase letters, uppercase letters, digits and various auxillary characters, so you end up with 50-100 dimensions (each char is represented in one-hot encoding).
Still, it’s a drag to model upper and lower case separately. It adds to dimensionality, and perhaps more importantly, a network gets no clue that ‘a’ and ‘A’ actually represent pretty much the same thing.