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Maybe it's not a problem. Squatters have to pay ongoing registration fees to maintain their stock so that puts a cap on registering of every possible domain. You could even see them as providing a service by keeping desirable domains available for people who really really want them instead of first-come-first-served which is quite a ridiculous way of allocating resources.

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Who appointed the domain squatters to provide this service? Ah, it was first-come-first-served.

The registration fees are very low and they're a yearly fee which doesn't make that a big burden.

>"keeping desirable domains available"

Eh, they're more like keeping the domains and selling them to the highest bidder. You're defining the "really really want" here as the entity with the biggest pocket. Domains cost so little for a reason, so everyone can afford them but obviously some people abuse this and it's why we need more oversight. IMO of course.

> Domains cost so little for a reason, so everyone can afford them

This is exactly right. Squatters are taking away from the people what the original designers of the system intended. If they had intended that only those with lots of money had short-length domain names, then they would have made them expensive from the start -- or made the price a function of the character-length.

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