Right now you can go and register a million different [domain] names for five days and the cost is zero. In January 2005, there were 1.7 million .com and .net domains registered. Of those, 700,000, or 41%, were deleted during the grace period, for a total net increase of 1 million domains. During January 2007, 51 million domains were registered, but 48 million were deleted, or about 94%. There was a net increase of 3 million names but most of the rest were just being 'tasted', according to ICANN.
-- Jeremy Kirk
Great intro article on domaining by Jeremy Kirk over at Network World, worth checking out.
Link: 20 Cents To Stop Domain Tasters, IDG News Service 01/30/08
I think ICANN should keep their 20 cents if someone cancels during the grace period, which would effectively kill the domaining "industry". Sounds good to me.
It is amazing how contextual advertising screws up so much of web ecosystem...