Many registrars operate as brokers for domain sales indeed (i.e. godaddy, namecheap). Then you have tlds operators with their "premium" domains that go for 1000x the regular price. Premium usually being defined as the top 10k english words and every kind of l33t spelling of sexual words.
replyNeither registrars nor tld operators care about squatting, even when they don't get a cut. Why would they? The squatter is paying them the same as you'd pay them.
Registrars get a lot more domains registered at 5-20 $/year this way.
How would our lives improve if squatting were "not allowed"?
replyFor anyone trying start a small business, it’s frustrating to go through dozens to hundreds of potential company names before you can find a reasonable URL that isn’t being squatted for 4-5 figures.
replyWhat positive outcome comes from squatters sitting on unused domains?
Well, at least there's still some room for that with some of the new TLDs.
replyBut at some point we will also exhaust all nice TLDs too...
It will be even more difficult than it is now