Using the law to define theft is not a great idea. Governments can and do steal. For instance multiple nations have now passed laws forcibly seizing land from

Using the law to define theft is not a great idea. Governments can and do steal. For instance multiple nations have now passed laws forcibly seizing land from individuals, without compensation, exclusively because of their race. That's still theft. More accurate would be to state that "this does not appear to be unlawful." And domains are not like phone numbers, they're like entries in a phone book. This would be more analogous to a famous "Joe Blow" getting the phone book to remove every other "Joe Blow" from the phone book since he feels (and is probably correct) that if somebody's looking up "Joe Blow", they're probably looking for him. And that is not an action I think is reasonable.