Earlier quoted context omitted.
It's not that it's 'more popular.' That's not the debate. The debate is that the .com site is being squatted. If it was some 4chan interior design company with even some legitimate business, then the debate would be over. Do you think it's a bad precedent if Google becomes popular and you can show that a person subsequently registered all the single permutation misspellings of Google and then tried to sell them back…
Define squatted (or define legitimate use) - if the owner is using the domain for email and simply finds serving advertising provides some income, is that squatting; given there is no confusion issue. If they have a project in hand, or bought it to give to their child when they're 18, or ... are all those squatting? How about, as for me, they renewed for a client and then the client didn't pay but now wants "their" d…
If you have a domain where you do nothing on it, but it's not copying anything either, that's squatting but nobody is going to care.
If you hold a client's site hostage for not paying, yeah that sounds like squatting. So what, that's not a value judgement.