Not much to go on with this case. The family refuses to disclose their real name and only identifies the kid as Riyanna.
On the face of it I am less likely to think this is an instance of computer glitch and more likely an instance where the kid has the same or similar name as what's on the no fly list.
It really bugs me that the parents can get away with running to the media and only telling 1/2 the story but still saying Jetblue is bad for putting themselves through this instance. A lesson learned for the parents is to not name their children with common names that could be put on the nofly list. I have a 22 month old at home and this was very easy to accomplish (comming up with a unique name).