Reno - 1:56 pm on May 27, 2011 (gmt 0)
Can't see this hurting any search engine. However, using walkman's example above: "hotels.nyc"
If any search engine gives strong algo points to keyword domain names, then I guess we could argue that someone looking for "hotels in new york city" might see "hotels.nyc" near the top. So in that sense, it impacts Google et al.