The registrar is fee to do anything it chooses with the domain name that it sells to the registrant. One of the experts who advised NSI in the design has protested loudly against the move and asked NSI to free him from his non disclosure agreement so that he may publish his criticism to allow independent observers to make their own judgements. NSI has refused. By the end of the month it was clear that the entire shared registry system was a design failure. As early as late December complaints of break downs were becoming evident.
Nothing is wrong.
No, nothing is wrong as far as the design goes. Our article summarizes debate from the IETF and Domain Policy lists that makes quite clear the absurdity that the White House and its ice president is visiting upon the Internet.