One intriguing proposal to limit domain name squatting is "Harberger Taxation"[1] Under this scheme, every owner of a domain would declare a value for the domains they own, and pay a percentage of that value as a tax (replacing the current annual registration fees). Owners are incentivized to post an accurate value for their domain because they must sell their domain for the price they list if anyone offers to buy at…
Also sometimes there are legit uses, like squatting names in order to protect your brand. For example I could see google squatting google-search.com