Your advice in how to protect their domain name is be willing to sell it and don’t bother putting up a fight…?
Don't confront them to offer them anything, let them come to you.
Trademarks dont mean you own a word, they mean that the use of that word is to be protected from passing-off/impersonation (intentional or otherwise).
So by all means call yourself Coke - just dont market yourself as a soft-drink (or whatever other categories the mark is held and/or defended in).
If the person holds an asset and isn’t doing anything malicious with it there is zero reason they should be forced to give it up just because some corporation wants it.