But letting arbitrary customers take arbitrary 3 level domains, and others take 2 level domains, seems like a mistake as it's not very reasonable for every 3LD customer to put the 2LD on the public suffix list, but mixing 3LD and 2LD registrations means you can't public suffix *.name.
Seems the whole idea of having both was always misguided.
The issue is that .jp registered outside of a few Japanese registrars are legally not allowed to offer Whois privacy.
But that was simply the easiest way to market your website as a trusted government entity. And now nobody has ever heard of .us domains in active use.
This is a bug, not a feature.