The only mistake was not putting all US domains under .us, now the US has an an exorbitant privilege to print and enforce rules on new TLDs.
Even gTLDs using other languages, like .kaufen, are under US jurisdiction. A German website selling to German customers using a .kaufen domain is forced to abide by US law as well as German law or loses the domain. Using a .de domain they would only have to abide by German law. That's unfair that the US government gets to stick its grubby fingers into every TLD that isn't a country code.
You're right in a sense, but the US invented the internet, so they get to invent the rules, no?