This makes total sense to me. I'm not saying it solves all problems but it eliminates so many of them, including a meta problem: the risk of new classes of problems being unexpectedly introduced (by say a private equity acquisition or similar).
If domains themselves are the profit center, you are likely in trouble if there's really any incentive for them to make incremental revenue in such a competitive market. Doing 'the right thing' just of course will not factor in if there's really no reputation at stake.