As an interested layperson, I had figured out how to search for trademarks and determine the final action in the United States Patent and Trademark Office. girl from auntie has ferreted out the reason - the refusal was due to confusion with the "Stitch & Bitch Cafe" mark. Being an academic, I like looking at the original source documents; I've beaten the government search engine into submission and present the actual document.
And I hear you, Sahara - I too believe the name is generic, and has been used by lots of sewing and knitting groups have used it through the years. I believe one commenter in girl from auntie's multipart installment brought up a specific case from her mother's 1938 yearbook. But this brings up the failure of the commons - how do we protect phrases that should be free to use by everyone? The problem is two part: 1) how do we organize the disparate groups, and collect together the money, skills, and information needed to protect these phrases? and 2) instead of retroactively fighting every action coming down the pike, is there a way to proactively protect the phrase?
Part one is potentially managable - there are lots of examples from grassroots organizations on how to grow and manage groups of this type. But there is the question of whether skills and resources should be put into something of this nature, and for how long, when there are so many important causes and other things that occupy our time. If it were a one-time effort, it might be worthwhile to protect some of our commons. That leads to problem number two - there isn't really a way to register a phrase as "generic, everyone is free to use." There might be some way to organize along the lines of Creative Commons, where some of the options are putting works into CC stewardship, where they are free to be used by anyone. However, trademarks are a lot trickier, since they are only applicable under certain contexts.
There are also more questions necessary for the case of "Stich" 'N & and "Bitch." Since the time window for challenging a trademark is only a month(!), which occured way in the past (2000) for the "Stitch & Bitch Café" service mark, is it even possible to challenge? Is it too late to present evidence that the "mark" was in active use by many people at the time, and should have been considered generic? Could widespread use today be used to show that SFSE did not protect their mark, and it should be considered generic now? (I'm assuming the latter would be harder to show, but that the first route might not be possible at all at this date - but remember, a little learning is a dangerous thing, and IANAL).