You pose an important question. Fellow ICANNwatchers remember my critisism of Mr Carl Bildt's ALSC report.
This is what I wrote then, and it has a lot of merit in respect of the question you pose:
The only regulation that I consider sound is a global regulation based on the participation of nations. The work of ICANN affects mostly those who still have not found their way out on the Internet. To make domain name ownership a condition for voting rights is therefore not appropriate. Current domain name holders should be most interested in decreasing the amount of new top-level domain names. New top-level domain names will lead to inflation in the legal and economic rights of the domain name holder.
A new top-level domain name can lead to multiple registration of the same domain names and defamation and degeneration. A "good" domain name will be less worth if it's available under multiple top-level domain names.
However, it will benefit society if the name space is widened, while it will lead to more competition and innovation.
Hence, I find it more suitable to make as many nations as possible, offline or online, participate in ICANN or an organisation replacing ICANN. It can be achieved through the United Nations or a similar body."