What about highly sought-after domains, such as sex.bit? You are saying that you don't want a market where these domains are traded, because people shouldn't pay for them? Then how do you propose to go about the allocation of sex.bit? by lottery? by decree from satoshi?
Sure you can trade them, just like IRC channels, you could trade them for bitcoins, but when sex.xxx, sex.com, sex.net, sex.sex, sex.xes, sex.sexy, etc, are available there won't be much of a fight for them.