At least if you are paying for it you are entering into a contract of service from the provider which gives you a lot of legal recourse and leverage and also supports the business so that they do keep providing you the service.
Ah, good point.
All domains are like that, though, even TLDs.
Com could be free as well. The only real difference is choice.
Or to put it differently, you say it doesnt need registration. Well, it does. They require it. So what.
What this means is OP can arbitrarily shutdown their offering at their sole discretion and, as a result, you'll lose access to the eTLD+1 you've purchased (domain, email, all gone). However, if you purchase a gTLD domain through an ICANN accredited registrar, the registrar can't unilaterally do the same (even if the registrar implodes, you still own the domain and you can move it elsewhere).
[1] ICANN Registrants' Benefits and Responsibilities: https://www.icann.org/resources/pages/benefits-2013-09-16-en
[2] ICANN Registrar Compliance Program: https://www.icann.org/resources/pages/registrar-2012-02-25-e...
[3] https://jfhr.me/what-is-an-etld-+-1/
[4] Neatnik LLC (the company behind omg.lol): https://home.omg.lol/info/legal
The entity that you're actually leasing the domain from is the registry operator-- such as Verisign for .com or PIR for .org. And, yes, it's still a lease relationship-- while there are some ICANN-mandated consumer protections around your "purchase" of a domain, if you stop paying your annual renewal (or run out of whatever amount of time you've prepaid), that domain isn't yours any more.
Omg.lol is operating the same way (albeit not under ICANN oversight, as they're not running a gTLD); they've just cut out the middleman and are leasing subdomains directly rather than via third-party registrars.
Not entirely true; I'd argue it's closer to subleasing a part of the property they're currently leasing from an ICANN accredited registrar.
> they've just cut out the middleman
Quite the opposite! They've just introduced themselves as yet another middleman on top of the already existing middleman (there's still a value proposition to this, but it's not the same).
TL;DR: subtenant rights ⊈ tenant rights
Of course, only as long as they can operate the service forever...