Yes, but for an easier entry into the LPeg world, consider LPeg's "re" module, which gives you a regex-like syntax and which you can specify a set of rules, as in a grammar (think Yacc, etc.). You'd basically write rules for escaped characters, bracket groups and regular characters. Then, you could associate functions to the rules, that would emit either the same text they consumed as the input or the case-insensitive modified version.
The structure of your rules would take care of the even-odd distinction automatically, bracket context, etc. LPeg uses "ordered choice", so if you add your escape rule first, it will handle %[ correctly and avoid mixing it up with the brackets rule, for example.