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You cannot blame anyone for doing what they feel is in the best interest of their company, especially when it's in their tos. I'm too lazy to look, but I suspect that most registrars have similar policies. Keep in mind that none of us actually own our domains.
I don't think that anyone in mainstream is going to rule against them, it's one of those 'save the children' issues.
Isn't Mike AI one of the owners of DirectNic? Maybe someone can get him to visit this thread and comment.
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