If you buy a domain from a squatter, you encourage domain squatting. Domains are not that important as most browsers send the url to a search engine. So just register brand-name.com instead of brandname.com. Or pick another TLD.
This reads like: If you buy good real estate from someone who has a parking lot, you are encouraging people to buy good real estate. Better to buy a swamp an hour out of town and build your business there.
More like someone occupying lots of parking spots outside the mall, then charging many times the price for you to park there. Or take up many seats in public transportation, then charge people extra to sit, or hold seats until their friends come aboard.
More like renting an apartment after someone neglected to pay their rent, and then continued to not pay day-after-day for the next 75 days. And afterwards, creating a fair bidding process to allow interested parties an actual chance to get that apartment for themselves without having to own sophisticated technology to be the first person there.
