I kind of want the price to increase, to combat domain squatting. That said, I'd much prefer it if the money went to some charity instead of the ICANN.
Squatting can be easily prevented by reclaiming domain names without refund when the domain names have not been used or used illegitimately for more than a fixed threshold period of time. Parking pages or any other use that intends to work around the restriction can be deemed illegitimate use.
My personal domain doesn't even have an A record in the DNS, only an MX record because use it for all my email. By your definition that would be an "illegitimate use" and I should lose my domain...