You Don't Own Your .io or .ai. You Rent a Country's Politics
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That said, despite it being in a position where it would have normally disappeared, I don't think .io is going anywhere... there's way too much interest in keeping it around. I'd go so far as to suggest that maybe it should become "not" a "cc-tld" despite it being two characters and having it's origins in a national definition.
There are two major problems with .io domains:
The first is that the islands which should own the domain suffix, don't, thanks to a wonderful piece of modern day British Imperialism. If you ever feel the need to donate to us, please give it to a more worthy cause.
Secondly, there was a security issue with the .io domain. In 2017, a researcher managed to take control of four of the seven authoritative name servers for the .io domain. We accept that mistakes can happen, strong processes limit the chances of them happening, but they still can.1. For generic TLDs like .com/net/org/.<all kind of new ones>, the rules mostly come from ICANN, the registry, and the registrar.
2. For country-code TLDs like .de/io/to/io/ai/ly, the rules come from that ccTLD's own registry. Best example AFAIK: .ly domains must not contain obscene contents contrary to Libyan law or Islamic morality (which was a driver for bit.ly's domain change)
So ccTLDs are not simply "generic TLD rules plus country rules." They are their own category with their own policies. Trademark violations are one way to lose a domain, but not the only one. The risk is MUCH higher when using a country TLD.
There were other annoyances for .de, .ca, .fr and .cn. The .cn ccTLD has similar issues you mentioned for .ly. I never had to register a .ly. Mark Monitor was able to check the box for a legal presence for a few ccTLD's. Oh and the only ccTLD we were actually going to use was .cn as we would have to hand over all SSL cert keys to them. The others were just for anti-fraud and anti-squatting reasons thus making it all that more annoying to jump through hoops.
Most countries protect their own much better than foreigners!