Wheat: Isn't that almost the same way that the new gTLD's always has been planned to be registrated? (Not that .ca is a gTLD)
Anyway, I'm rather ambivalent whit how domain names shoul be registrated. I like the freedom to register whatever I want but if only everybody else would keep their registrations more sane.
Hmmm, makholm.net is maybee not the sanest domain name, but we got bored waiting for the .nom gTLD.