[1] That "due diligence by applicants" argument suggests that
this is a huge fuss about nothing.
The problem, as noted with .CS, is that it screwed up people who have
no connection to the applicant and no interest in buying a domain name
from them. Viz. the current concerns about .corp, .home. and .mail.
I suppose you could say that about .onion, but you could also say that
their current request to be added to the 6761 list is the due
diligence.
R's,
John