You're right, but consider the hypothetical that instagram.com was squatted and they instead went with instagramapp.com or whatever. Today instagram.com would b

You're right, but consider the hypothetical that instagram.com was squatted and they instead went with instagramapp.com or whatever. Today instagram.com would be very valuable for advertising and/or scamming purposes. Instagram would probably consider buying it for $500k, a drop in the bucket for them, just to get rid of the problem. In Sweden we've "solved" this problem by a rule that says that if you incorporated the business XYZ then you're entitled to the domain XYZ.se. Incorporating requires $2500 in capital and you can't incorporate as "pizza" or any other common word, so squatting is not a problem there.