There's a difference between pretending it doesn't exist, and acknowledging that it's inevitable (especially in a system where there's nobody who can unilaterally reassign other parties' domain names). What would your solution here be?
> There's a difference between pretending it doesn't exist
No one is pretending it doesn't exist
> and acknowledging that it's inevitable
What you and the sibling comment are proposing is bot acknowledging it, but making it the normal, and possibly only way to do it, and to incentivize people to do it.
It is already the norm with the current domain registration system, so I'm not sure what your point is. I recently tried to purchase a domain with some version of my name. There is nothing hosted there (domain name lookup fails). I offered them a few grand for it which I thought was reasonable, no response.
Would be interested in your solution to this problem if you have one (seriously, I don't know how to solve it).