My observation from being on that list for the last couple years: it seems like a great idea but nothing ever pans out. Just so you get an idea, a few examples of my targets: personal domain for a generic computer consultancy, budget around $300; publishing company e-reader, budget around $20k, friends' projects from yoga studio to nightclub to astronomy, budget around $100, etc. Criteria: relevant, easy to remember, easy to pronounce, no competitors in the same space... the usual.
Try it for yourself. Make a quick list of 10 real-world businesses. Then take a week's worth of your mailers, put yourself in a prospective owner's shoes, and try to match them up. I suspect you would see that it doesn't add much value. There are kinda sorta cool names on your list for sure, but nothing that a few friends over beers (or thesaurus.com) couldn't come up with in 15 minutes.
Sorry to be a downer... I very much agree that domain generators suck. A better offering would be killer.
Perhaps it's just not a "computer problem" (i.e. a repetitive task with well-defined parameters). I'd love to be wrong on this one.