I was on the application for the .name top level domain back in 2000 and then there was a reasonable excuse for that - we were in the first new batch of TLDs. We had to contact a lot of site owners to try to smooth the path. But given the number of new TLDs since, you'd think people would've learnt.
Tradeoff: Failing to accept a limited number of rarer domain. Vs. all the errors caused by idiots who can't spell mgail.com, or gmail.cmo, or gmali.com, gmail.kom, or whatever the heck that thing is.