That's a very succint way of putting it. Exotic TLDs are completely unecessary to deliver content. The more that exist, the harder it is to remember them, which is counter to the entire point of DNS.
The more often they’re used, the more likely someone will be able to own <noun>.<noun> or <verb>.<noun> or whatever, rather than “catching 3-4 letter thing you can say alloud” + “current trend of website name hacking” + “current cc tld used in current trend”.
E.g. “Bit.ly”, “Tindr”, and so on.