1. I don't think some in the USG wanted to get a grip on their contractor.

2. While you make compelling arguments, I don't think that the assertion that more TLDs, more registries, and more entries in the root zone file are the answer is demonstrably false. What if there had been no Sunrise for example? What if the widespread fraud that went on in both .biz and .info hadn't happened. If I pay close attention and can't understand what .biz 2b and .info LR2 are, how can the average registrant? What if there had been no Smiley .biz lawsuit? What if there had been no widespread and still ongoing gaming of both .info and .biz, or if it hadn't been widely publicized? I've played a role in that one and it's troubling that one thing that does is benefit VeriSign, it's almost enough to make me shut up. What if ICANN had given IOD's .web the OK? Or other applicants, either instead of, or in addition to, current ones? What if ICANN hadn't taken so long to act? Or micro-managed the process? What if ICANN had acted when it was clear that some registrars were (and still are) warehousing many of the most desirable names?

Well, with all these questions and more, I think the only thing that is demonstrably false is that ICANN was competent to be picked as manager of this process. -g