[account42]

Is it really better if Mirka, Minka and Micka get to pay for a domain but won't be able to use it because the dominant webbrowser shows super scary warnings?

Still seems better to raise the issue as early as possible so they can find a solution (appeal or chose a different domain) before investing into the unusable domain name. It would also mean that the dispute is at a layer (ICANN) where you at least theoretically have some rights instead of at the hands of a megacorporation that thinks the best way to reduce customer support costs is to make it impossible to get support.