Lets say the domain is .anything, and your domain had to be at minimum 10 characters to limit the use of squatted names”. Then you could build a website for one purpose like “lets-go-get-pizza-tomorrow.anything” or whatever. Perhaps there could be a mandatory expiry or something.
I think this should fall on governments to create such a system for their citizens. A cheap web.de or website.au, would be very practical.
Also I think national regulators would have more legroom to control such domains as they can exclude non-residents and avoid to deal with international rings.
On a personal level, I'd suggest buying a short domain (I own a couple of ab.xy ones) and use that as a personal tld of sorts.
And with Cloudflare, you don't even need to manually configure the DNS settings or let's encrypt.
Having a website up and running in 10 seconds without having to go through the process of registering a domain is such an amazing experience!
Having a cheap tld (e.g. .xyz, .pw, .icu) definitely lowers the odds of being able to send emails from your domain name, impairs search engine discovery, and has other similar effects.
Unsurprisingly, with zero cost and zero registration information, they were very popular with spammers - https://krebsonsecurity.com/2023/05/phishing-domains-tanked-...
I used them for cool domain hacks and - while I'm sad those domains are gone - I'm happy the net is slightly safer.