They seem to lobby for this about every year.
Suppose you have a business, say, Mybiz, Inc. You set up a website mybiz.com. next thing you know you have a hundred websites named mybiz.cc, mybiz.tv, mybiz.this_that_and_the_other_thing, all squatting on your trademark.
You then either have to let them run wild or try to buy them up. Even if you succeed in acquiring all the clone sites, you still have to pay protection fees to Icann or whomever forever to hold onto the names.
Even that doesn't solve the problem because they'll just stuff the internet with more domains, thus expanding the problem.
I voted your comments up at the EU Observer site. I recommend that all Freepers do so and add your own comments if you want to.