.co did something interesting by making domains $30... which is no different than $8 if you're buying a small number of them.

However, these is a huge issue if you're buying 100 or 500 or 1,000.

Moving domains to $25 a year would probably reduce the amount of hoarding, as it would narrow people's focus.

For Weblogs Inc. I bought 3,000 domains when we started, and for Mahalo I've bought 2,000 or so. It's a trivial cost to buy all the possible options you might need. If the economics were 2, 3, or 4x i would have narrowed the focus down considerably.