Yes, this, though I really am disappointed in ICANN here. ICANN should not have sold a TLD known to be in heavy use already. Their desire for cash from this process seems to have overwhelmed their good sense in managing the domain system.
The reason the new tlds were needed is the lack of options for buying a new domain. I know plenty of smaller biz and startups who couldn’t get the dot com they wanted and ended up choosing a really good keyword rich new tld.
Like if an app tried to register apppowered.com it would definitely hurt its image. Obviously massive players are above the rules somewhat.
Wasn't it $10k upfront to have your application for a new gTLD considered? This times ~1200 ... works out quiet good.