What are free markets making worse here? He agrees that participants should be allowed to buy and sell TLDs at whatever they are willing to pay. How is that not free market? He suggest we fight this buy not paying for it. How is that not free market? His only complaint seems to be that the price is ridiculous, and ICANN should be "better than that".
The price of something is what someone will pay for it. If you don't have a problem with people choosing what they will pay for, then you don't have a problem with free markets.
Complaining about confusion for users, cell phone towers dotting the landscape (?), and that some other people would spend their money on something else (free market), do not help your claim that free markets make it worse either.