https://tldrisk.com/beyond-basics/reclassification/
> This basically makes the entire TLD unviable for serious use.
It doesn't just make the TLD in question unusable. I think it makes most of the new gTLDs unusable. Registries can enact policies and systems like this, regardless of the detriment to registrants, due to a lack of oversight and registrant consideration by ICANN. That creates uncertainty and makes it pragmatic for registrants to simply choose the gTLDs with lots of history and precedence; .com, .org, etc..
The only two TLDs I'd personally rely on are .com (gTLD) and .ca (ccTLD).