Well, what the heck where they expecting...
1) They are selling a product people do not need.
2) At a very high price. $7-$10 vs $20-$50, to $100.000s+
3) People are used to .com/.net/.org, they are well known.
4) You can do whatever.thing.i.want.com and it has proven that people do not remember it, why do they think cocacola.com is worse than refreshing.drink.cocacola or softdrink.cocacola, or was it drink.coke, or cola.coke...? I'm confused, let's Google it.
Yes, the DNS industry has a problem and it is not a PR one, they thought this little scheme of theirs will bring them riches, and they're hurt no one cares.
Idiots.