Sure, they can say that.

And if they are a big company that owns hundreds of thousands of unrelated domains with no apparent email traffic, it would be pretty obvious that it's untrue.

So sure, a lot of small bad actors would get away with it. But it would could potentially take out the biggest bad actors.

If the squatters have to do that, then their squatting has no value to them. The point of squatters is to eventually sell the domain and if all the domains look "in use" (so no parking allowed), the amount of people sending offers will fall.

Random, but focused on those who register many domains?

The fact that they can pay for it doesn't mean they're entitled to it as a logical matter.

I'm not saying a fix is or isn't needed, but there are all kinds of things we restrict despite ability to pay. For example, you can't buy a social security number without a person or a physical address without physical land to tie it to.

Your comment doesn't prove your conclusion.

You come across as possibly stuck in a scarcity and/or entitlement mindset too. There are effectively an unlimited supply of domains, and you're perfectly free to pick another one. If you want the right to register as many unregistered domains as you wish, bid on registered ones and generally live in a free society, you must accept that there are some unpreventable problems that come with it: like suicidal idiots with knifes, jerks who cut you off in traffic and "domain squatters." Aren't there bigger things to worry about, rather than worrying about what other people are doing with their property? It's not yours, after all, just because you covet it like Golum.