I believe it serves that purpose reasonably well.
There are three criteria that ALL have to be met (1. identical or confusingly similar to your trademark, 2. registrant doesn't have a legitimate reason, 3. registered/used in bad faith). In cases where these are met, it's pretty clear that the owner should be losing the domain.
I think it would make sense to add a rule that someone who issues a spurious UDRP request should be required to pay the domain holder some default amount of compensation for the hassle, but overall, I think this is a process that makes the Internet better, not worse.