Bluntly: this argument happened over a decade ago. We lost. The domain market is run with all the incentives set for people to hoard domains and sell them dearly on the proposition that they will to the owner eventually be worth 5+ figures.
All you're doing here on HN is --- whether you realize it or not --- brainwashing nerds into believing the market works in ways that it does not.
In the real world, this is an extraordinarily generous offering that absolutely hits a sweet spot in reducing pain for new startups. Every one of the entrepreneurs on this site have gone through days, weeks, sometimes months of pain trying to brand a new product. I have products I haven't started working on yet solely because I can't figure out a name I don't hate.
Please stop conning nerds into thinking the world works the way you want it to.