Why it shouldn't be allowed is it lets people sit on domains and not use them for an indefinite period of time. Being able to sit on it for a short period of time seems reasonable but for years and years to sit on a domain and not use it seems like it hurts the industry.

Additionally as you pointed out by linking my previous post, I find it very questionable that the same company that charges people to hide their domain (and host them), can then also charge people to backdoor communicate with those same sellers. This seems like a shady business practice.