I company registered the domain google.no (norway) some years ago and ever since Google has tried to get it "back".
After the first round in court last year the judge ruled in favour of the company that owns the domain, who by the way put sales of "shades" on the page, though it isn't their main business, to legitimate the case, clever boys. You can imagine how much traffic they got to the site.
However now, after an appeal from G a higher court has decided that they can't own it any longer and get the benefit of the G. name so it looks like the big boys did win in the end.
The article is in Norwegian but here’s the link www.dagbladet.no/dinside/2004/07/15/403142.html
Why would not they just allow any first level domain "suffix"? This way there will be so many permutations that there will be no point to cybersquatter domains as there will always be some other nice name.
Oh wait, then domains won't be "worth" that much and people in charge of the process make enough money for it to never ever agree to free DNS.