You're assuming that if the "squatter" hadn't bought the name it would be available for you to use exactly when you wanted to use it. It's also possible that so

You're assuming that if the "squatter" hadn't bought the name it would be available for you to use exactly when you wanted to use it. It's also possible that someone would buy it and use it for a business or personal use and then it would actually either not be available at all at any price for you or you'd have to pay more money for the name then a squatter would have charged. Here's another different example. Someone buys up land near a proposed hiway exit. And then they hold out until a fast food chain wants to buy the land for the restaurant and pay the price that a large corporation can pay for that type of land. Somebody made money on that transaction. But the small restaurant is upset because "all the good land is taken by squatters and I can't locate my restaurant there because I can't pay the price what gives them the right to charge me all that money.". Does that make sense?