> As recommended by IETF standards track RFCs, existing deployed systems apply a search list to single-label names prior to attempting to resolve them.
Note that it says "prior to" rather than "instead of". This is a reason not to use them from an operators POV, not a reason to block them.
> most users entering single-label names want them to be resolved in a local context
Most users have absolutely no idea how any of this works.
> These include causing traffic intended for local services to be directed onto the global Internet
I've never experienced any system that applies the search list after trying the label by itself.
> The IAB therefore feels compelled to state the following:
Each of their statements apply to people who would operate these domains, not to users blocking them.