That's an absurd false dichotomy. Gmail doesn't charge me $850/year for an email address, but somehow they managed to avoid people squatting thousands of addresses and selling them on the after-market at an exorbitant markup, and Google doesn't charge me $850/year to search things, and yet if I try to use `curl` to send a single search request it blocks it, but the Google domains team somehow doesn't think that it would have been possible to stop people from squatting thousands of domains "within milliseconds of TLD launch"?
Sorry, it's way more believable to me that this decision was made out of greed rather than a lack of imagination. Overcharging is may defensible position from a business perspective or even an ease of engineering perspective, but let's not pretend this decision was somehow made purely for the benefit of customers.