The courts, in the USA, have found that domain names are not property, instead they are like telephone numbersThe implications of the current legal position you describe are troubling.
These virtual identifiers, whether it's a phone number or an email address or a domain name or a Twitter handle, are now the dominant way we contact someone. Physical addresses that are inherently tied to their current occupant (and the well-established pain that comes with updating everyone if you move home or office) are becoming secondary.
More than that, these IDs are becoming trusted ways to reach a specific person. Many organisations, including the likes of banks and governments, now rely on some form of two-factor authentication using phones for access to important facilities. Many organisations will grant you the keys to (your part of) their kingdom as long as you can respond to an email to the address they hold for you. Many businesses reach their customers through services at their domain, and that domain may enjoy special privileges that a customer has permitted such as being whitelisted for sending important emails or just simple things like being bookmarked in the customer's browser or turning off an ad-blocker to support a site.
The law seems to be outpaced significantly by the technology and society's use of it here. If we aren't going to enjoy real property rights in terms of these essential identities that are managed or hosted by third party services, stories like the one we're talking about here today may be the tip of the iceberg.