No recycling option in the US yet either, though their website says they plan to have a system in place by 2013.
The lawsuits mainly have to go with Nestle's patents. The comparison to Gillette and razor blades is a good one. There is a fortune to be made on the capsules, so not surprising that Nestle is fighting the generic makers every step of the way.
Some South Korean company began selling generic Mach3 razors in the US a few years ago, and of course ended up in federal court with Gillette. The case was settled, but as the ripoff razors are still for sale I'm sure Gillette just gets a piece of the action now. I wouldn't be surprised if Nespresso did something similar...