Earlier quoted context omitted.
What's your proposed alternative? That generic category names should be disallowed within a TLD? Or that some public or community-driven version of a for-profit service should control the generic names?
Maybe names that have obvious “generic” squatter value—i.e. names that (at the time of their attempted purchase) describe entire verticals, rather than uniquely identifying a business—should be put up for auction rather than being first-come-first-served. (That would also include names that describe a vertical that someone tried to trademark into being the name of a business anyway: pets.com and the like. If that tra…
Edit: Normal dutch, not reverse.