I certainly don't think that VeriSign should get the money for doing nothing. I think it should go towards something productive. Ending up with excess cash is hardly a problem with any proposed scheme.
> There isn't a shortage of domain names by any means
Sure there is. Just look at how difficult it is to get the domain that you want.
> It also allows everyone access to the domain name system.
Not at all. Domain names are hierarchical. Get one under your ccTLD, or pool your resources with others and use a subdomain.
In any case, I effectively don't have access to the domain name system because of all the squatters! In other words, there is a supply shortage.
The global namespace is not big enough for all of us. If you want a global brand, then you will have to pay for it. At the moment you pay squatters. I'd prefer to put this money into some kind of better cause than squatters.