As you might expect from the title, this posting enters the vast miasma of opinion about the decision to loosen up the rules governing naming web sites. Here are the good, the bad, and the extremely ugly.
The good:
MARKETING will absolutely love this as a way to further move their branding out into E-verywhere (I haven't coined a new term in a while... pronounced Ee-vrey-where, this term stands for the total pervasion into the electronic existence of an individual via sponsored e-mail, customized pushed servlets/dashboards, widgets and anything else imaginable). It will permit them to have a potential where every company has their own place to go instead of having to conform to .com, etc.
USERS, easily amused by shiny, noisy things-which-make-amusing-diversions, will find this to be something new, therefore trendy. Some users will find this to be something that they understand better than sticking to the country-based standards (who is .ru and why do they always want my corporate user name and password...), and their surfing will be enhanced.
TECHNOLOGY COMPANIES will enjoy having a fresh source of FUD-generated investment capital, and start-ups will abound that specialize in packaging the unneeded in attractive formats.
The bad:
MARKETING will find that it is easier to build something new than to cause people to use it. Since the bare bones of the internet were constructed using a modicum of knowledge about what sites were and where they were, people will find it difficult to translate to the new way of things, where they knew what company they wanted to know about and they had a chance at tacking .com on the end and getting what they wanted. Some will find the new names confusing, and so IT departments will be overrun with requests for more DNS entries (Domain Name Service is a translator that is used to help make the internet more usable for people - people type in the words and the DNS translates the words into a numerical address that the computer users to connect. This works the same in reverse) and more proxy creations (a proxy takes one word and translates it into another set of words that are understood by the DNS server - basically a proxy would allow a user to type in BLOG, and the proxy would actually enter ctuite.blogspot.com, which the DNS server would then translate into the address, and so on...) to try to allow more users to do exactly what it is that they want to do, how it is that they want to do it and do it more quickly than ever before.
USERS will be confused, for the most part. There will be quite a few more things they have to remember, and when they hear that they can use the old addresses as a matter of convenience, they will be a little taken aback at why the fuss was necessary to begin with. When that point is considered, it is a little confusing. This could be termed the conflict of human nature and technological capability, SHOULD versus CAN for short.
TECHNOLOGY COMPANIES will be forced to change and adapt. Since that is a portion of the nature of technology, there really isn't a functional issue of note, but there is a perceptual notion that has to be taken into account. Companies who 'play ball' will have to bend over backwards to accommodate the laggards (not a personal attack, just a business term), which will be interesting to see. The companies will also find that in making information available, they have actually hidden it.
As an example, suppose that a company wanted to use their name and were able to do it, so they decided to rename things along the lines of their different areas. So this company, called Widgets, would place their sales department's page under www.sales.widget. Someone who typed in www.marketing.widget would not get where they were wanting to go. Currently web pages are coded so that if someone were to go to widget.com, they would automatically be placed on the index page, and could go from there. If the company used .widget, they would have to have a way of getting users who have become lost in their site a way to 'get home' to the index, or main site. This is not something that could not be done, but it would have to be standardized across the internet to make it truly effective, and the more variation there is in an organism, the less likely you will be to find useful similarities that cut across breeds. At the very least this would be a massive recoding effort.
The ugly:
The nature of the internet is to have semi-structured bones. What I mean by that is that the data contained within web sites is by its very nature unstructured, but the framework it is housed in and served from is very much controlled by a set of standards that govern how it is presented. This is what makes it possible for a website written here to be read in China, and vice versa, and without this structure it is more difficult to receive and understand data. Currently, you know that .com is a commercial site, .gov is a government site, .de is a site in Germany, etc., and you can code accordingly.
The expansion of the total potential names makes it all that much harder to 'know'; what is out there by several orders of magnitude. If you cannot know easily what something is, it is harder to deal with it. This is not a simple situation where a couple of things are changed and the issue is fixed - it is analogous to all of a sudden allowing people to change their last names and expecting postal service, phone service and all other service based on that entity ID to handle the data changes. Part of internet security is based on knowing where and what type of site is generating information, and this just complicates things.
The ugliest of all for me happens to be the ugliest because I am a parent of two teens, with a third one knocking on that door, which is a time for angst and issues to begin with. It is relatively easy to explain to the kids what the naming conventions are, which ones to be careful of, and which ones are okay to use. If they know .gov is our government, then they can type in whitehouse.gov and go where they intended to go (I mention that because of how many people have gotten confused by the system we HAVE and have gone to the .com variant, which is most assuredly not safe for work), and they can't have the excuse that they didn't know. This is the same as teaching them to look for traffic before they step into the parking lot.
Now, to keep with that model, there may be cars on the sidewalk, there may be what look like cars but are actually bicycles with car-looking fascias, and there may be illusions of cars, as well as cars that are painted so as to be hard to see, and thus increasing their danger. Taken back to a legal standpoint, how many people could have work issues if they go to the wrong site, getting confused about what is happening, and what isn't. I'm not being a doomsayer, and I know that this system could eventually work. What I am saying, though, is that this is a huge mess that will take quite a bit of sorting out, the eventual purpose for which I am still not entirely sold upon.