If I remember correctly, Network Solutions does this as well.
Edit: Apparently there's a name for this practice. http://en.wikipedia.org/wiki/Domain_name_front_running
Edit: Apparently there's a name for this practice. http://en.wikipedia.org/wiki/Domain_name_front_running
Since a huge chunk of the identity of businesses is their homepage, coming up with a great name (or several, so you can test them) that also has an available .com-address is probably the biggest headache in branding in my opinion.
Shouldn't this be controlled better? Shouldn't it even be illegal?