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If it's an extension of this idea, then it's been around for a while already (close to 20 years?)

while I understand what you meant, it's kind of funny that "web spider" could refer to both of them!

I doubt that .xyz did this intentionally. They just wanted to "capture" 404 traffic by responding to every URL with some content.

If just 1% of real users that hit this 404 page decided to stay on the site and browse related links, that's a huge win.

Indeed one has to wonder whether there are, say, Adsense ads inserted into those instapages.