It's a namespace problem. You can't just ban people from registering anything that might be confusing like that. If we followed your idea the internet wouldn't work.

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.