RE: Namespace conflicts

...right. And Delegation of nameservice is a CUSTODIALSHIP for the end
user organization/entity. The pain in .US was felt when some 3rd-level
delegates took on a custodianship for free and then charged folks
underneath them, a form of delegation-squatting, with no intent of
sheparding the resource until clue was imparted to the
organizations. That's just wrong, and triggered involvement of legal
entities again.

Right on target, Joe.

For the historical record, I would add that ISI eventually realized
that .US subregistries were using the third-level domains as a
cash cow. To deal with this, they imposed a requirement that the
city/county government concur in new delegations for their communities.
However, by that time the profiteers had swallowed up almost all the
.US third level domains that had not been previously registered.