David Conrad (drc) writes:
Other folks believe that anything that reduces the effective monopoly VeriSign has (through .COM and .NET) would be a good thing. This view holds that by increasing the number of top-level domains, you increase the opportunities for consumer (that is, domain registrant) choice, thereby reducing the value of any single top-level domain.
The process ensures that too few new TLDs will be created for it being a threat to VeriSign, but sufficiently enough of them will be created that it will bring in lots of cash, if only with application fees, auction, but also because of the perceived rarity. As business models go, it's a fine example of how to build demand without really servicing the community.
component of this management was explicitly stated as being the promotion of competition. While one might argue that creating new top-level domains doesn't really promote competition given the cost of changing from one domain name to another, realistically, I figure there aren't many other ways in which additional opportunities for competition can be created.
Allowing anyone to register a TLD is one, but I do agree it's not necessarily a trivial model.