That's awful. So someone pays them them, builds a website on their property and they still have you by the balls. I guess you'd only rent to add a redirect over to a new domain.
I've just tried negotiating with a squatter. I'm trying to resurrect a web game with a few thousand players which the original dev neglected. I've rebuilt it on another domain but the community have game data stored in the browser localStorage against the original site. I offered US$200 and was told no - not even a counter offer. I believe they see the domains as lotto tickets - it's in their interests to let a lot of the negotiations fall though so they can win big on a few massive deals.