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It didn't ignore it - we had lots and lots of long discussions about it, and the precursor - Nameplanet - was founded exactly because the alternative was worse; some of the most popular last names are shared by many million people, and a single person per TLD was able to make use of it. By sharing the second level, magnitudes more people would potentially be able to share it.

My last name is extremely rare, but it's still ~400-500 people that share my last name; enough to exhaust all current tlds.

When we founded Nameplanet, we did an extensive exercise to model it, and we bought ~60,000 domain names to maximize coverage of popular last names, and for very popular last names that obviously gave better coverage than .name, but in terms of first name / last name combinations it was better.

Even for people facing collisions, it still meant much simpler addresses a lot of the time.

Your objection is actually largely the opposite of the bigger problem in adoption: The number of people who want their name as their address is much smaller than we thought.

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