The risk is that it's not just the domain name at stake. A lost court case can result in an order to pay the opposition's costs. For a large legal team, that can be expensive.
I don't think so, no. Why should a person or company be financially punished for doing nothing wrong? Your suggestion means that if you are sued and pay for a decent lawyer to defend you, but your opponent pays someone dirt cheap (or no-win, no-fee), and then you win, you will be out of pocket for your own defence.
