George, I didn't get into your game theory because I think it's irrelevant.  
The IETF process is not a fast process. If parasitical organizations decide to 
try to get the calories they need from us rather than from ICANN, I am pretty 
sure they will quickly learn that this is futile. It might briefly suck for us 
while they learn that it won't work, but I don't think so.   We already know 
how to deal with useless proposals.

So with that in mind, I think we really are free to do the technically right 
thing without concern that it will encourage badness in the future.

As to the topic of fairness, that is inherently political, and we should steer 
well clear of it. There is no way we can reach consensus on it, and whether you 
want to admit it or not, by advancing the argument you are advancing, that is 
what you are asking us to do.

What you are saying is a really good argument against us reserving names simply 
because they have been squatted on.  I agree we should not use that as a reason 
to reserve a special use name.  ICANN already has a process for that    If we 
want to reserve a special use name, we should have a technical argument in 
favor of doing so.

But in the case of .onion, .corp and .home, we _do_ have such a reason. So 
there is no need to resort to the argument that these names should be 
documented in the special use registry because they were squatted on.

If .onion were being proposed today, and had no previous implementation, its 
proponents would rightly be arguing for .onion, not for .onion.alt, because how 
names read _matters_, and it makes sense for .onion to be a special use TLD, as 
it does for .corp and .home.

DNS has had a long run as the only name database that is taken seriously on the 
Internet, and so we no longer think of names as being something that has an 
existence independent of the DNS hierarchy, but that is not an inherent truth 
of domain names. It is just the status quo. I would not want to have to use a 
different name hierarchy designator in order to use mDNS, and that being the 
case, I don't think you can make the argument that .onion is qualitatively 
different from .local.
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