Is it any worse than IE taking you to msn search when a domain doesn't
resolve?
yes. if an app that interfaces to humans masks the difference between an
invalid domain and a valid one, it only affects people who use that particluar
app. however for other apps the difference between an invalid domain and a
valid one is significant.
verisign is masking the difference between a valid domain and NXDOMAIN for
all protocols, all users, and all software.