Earlier quoted context omitted.
The only sane answer is to increase the registration price for domains so that it relates more to the market worth of that domain.
Good luck properly determining that. It still doesn't solve the problem: then they're all just squatted by the rich.
That can't be right.
Even if you set the registration price to say $1,000 I think you'd solve a lot of problems. People wouldn't just buy 20 domains just incase they might put something on 1 of them.
Sure, you'd still get people squatting on names, but to a far lesser extent.
Currently, people just buy up a ton of domains thinking "Wow I'd like to develop that someday". It's antisocial, but it's encouraged by the nominal price of registering domains.