Unfortunately this is the world we live in where if you don't then someone else will and they'll abuse it so you have to act defensively.

Either you put the time into the project and care about it in which case you should spend the few dollars a year defending it from drama like this, or you don't care even a few dollars worth about the project in which case just let whatever happens happen because you don't care, a .org is the price of a few coffees.

Only a few parts of the world you can leave a bike unlocked on the street, and the internet contains the whole world.

EDIT: They're not deceiving users though? The first section on the index page links directly to the real putty site. They're very clear about all of it.

EDIT2: Nope. We really don't want DNS "moderators." All of us have seen what happens with forum moderators. Like I said if that were done the internet would not work. It's not about the cost it's about being unable to clearly define what should be banned.

If you want to see a great example of how moderation like that both stops legitimate use and fails to stop malware go look at smartphone app stores. The result is borderline unusable garbage.