I disagree.

My parents are typical web users. Fairly tech savvy, but not tech insiders. I recall telling them about bit.ly. It took a while to explain that it wasn't bitly.com, bit.ly.com, etc. They ended up just searching for it instead of typing in the domain name.

Think of the added friction this causes... and as we all know, every added interaction detracts from the conversion funnel. Taken in aggregate, many startups cannot afford the attrition of a shitty domain name.