New TLDs are necessary to shift resources and competition away from IPR protection (i.e., domain names are trademarks) and channel them to innovation. The current regime that supports the artificial scarcity only encourages IPR-type innovations (look at .TV -for television or .TM - for trademark). If there were hundreds or thousands of TLDs, then an IPR-type of play wouldn't be viable. At that point, innovation will shift to new uses for domain names or related DNS services such as Shared-Registry-Services. This isn't a new idea. I picked it up from Yochai Benkler's article on Wi-Fi. Wireless competition focused on securing rights to frequencies, a form of rent-seeking. When the frequency became open, resources were shifted to technology. You only need to look at the array of Wi-Fi technology to know that this statement is true. The DNS has a thing or two to learn from Wi-Fi.