Except the mess, which is ICANN’s mess or maybe a portal’s mess but not mine, I don’t see a real problem.
It, maybe, is the same problem as cybersquatting but there are still ways to resolve this. With peaceful means (Like Blizzard and diablo3.com) or less peaceful ways but it’s resolvable still the same.
Yeah, maybe the registration under the TLD thing is still a bug but everything have bugs and bugs can be fixed, by the engineer or by the client, in many ways.

The general idea is this: it’s a technological opening and like every one of those, we should see how it plays out and try and stir it for the best and not for the worst even though it has potential for both.