The problem as I see it...
...is that the entities who decry the 'cybersquatters' are *too cheap* to actually register the domain names themselves, and thus actually prevent the problem.
One can certainly come up with many 'reasons' that make business sense to have a domain name *similar* to someone else's; or, if not a business, at least easy to find in relation to someone else's.
What ICANN *should* do is come up with a rate structure to purchase a domain name *and any similar ones not already registered* as a "package deal" - costing more than a single domain name, but less than the aggregate cost of registering them all separately.