He doesn't need to be actively passing off. They just need to demonstrate confusion in the mind of the consumer, which he has already conveniently done for them

He doesn't need to be actively passing off. They just need to demonstrate confusion in the mind of the consumer, which he has already conveniently done for them here. You do raise the very relevant point that tlds don't equate to trademark categories and that in a more just world domains should therefore be out of reach until the laws catch up with this.