So you would really want to change domain ownership, which is a simple $10/yr process, into an onerous hundreds of dollars per year business/TM registration type process? Talk about an anti-democratization of the web. What about all the hobbyists that would be forced out from doing so? Most domains would cease to exist as they simply wouldn't be worth continuing with under this draconian system. "Simply regulate domains" sounds like an absolute disaster to me.

> At the end of the day: domain squatters create negative value for society.

I don't disagree with you, but your proposed solution creates a much worse negative value for society. As it currently stands, anyone can get a domain name cheaply and easily; it just might not be their first choice. Under your system, no one would be able to get a domain name cheaply and easily. It'd be as much hassle as registering an LLC with your state.