I hate the domain registration system as a whole, but I love the idea of TLDs. It's likely my anger is misplaced since I scarcely understand the business of it, but I find it infuriating that most ".com" domain names are taken by squatters. Perhaps squatting is just too hard to enforce (I think somebody could come up with an anti-squatting policy), but more likely I feel a lot of people decided it better to make an easy buck and have the "market" sort itself out.

However, I really like the new concept of TLDs. There are a few reasons why I think this will benefit the internet as a whole.

First, if it catches on, then TLD's will mean a whole lot less. ".com" will lose it's ubiquity, and I (along with thousands of entrepreneurs) will finally be able to register suitable domain names. No more need to make up names. No more need to negotiate with professional squatters, domain name dealers, etc.

Second, it's not just about the name of the TLD, but a lot about the policy. Imagine if ".startup" was just $1/yr, but you have 1 month to put up a real site or your domain gets put back onto market. Or you could have strict rules of inclusion: Imagine a TLD called ".realperson" that requires a video of you to be sent doing a backflip before registering the domain. Of course, the authentication of doing a backflip would likely be replaced by something meaningful.

Third, as alluded to in my second point, it creates opportunity for businesses built off of the concept of TLDs. There really is a ton of room for innovation.

Finally, I think there is a lot in a name. .tv, .info, etc didn't fail to catch on because nobody cares about names. They failed because all of the .tv and .info domains weren't owned by the same entity. If you add cohesion to a TLD, I think it could become quite powerful, and I think there are actually a lot of cool things people will come up with. For example, if .info were created under the new system, "foo.info" might be able to send you to a wikipedia summary of "foo". Alright, that example is not entirely useful, but you get the picture.

* Disclaimer, I scarcely understand the domain business. Any correction or insight is greatly appreciated.