But simply sitting on a domain name which is somebody else's trademark is not enough. These are extremely favourable to trademark registrants and not so favourable to individuals. There are many reasons why somebody would want to register a domain name. Trademarks are national rights, and domain names are internationa. Different people can have the same trademarks overseas - even in the same country.
Somebody has to decide who gets domain names.
First come, first served is the only way to maintain fairness. They are a mismatch. We should not think about them in the same way. Trade names are a property issue. They were originally not there to create a property for large organizations, but to protect consumers against confusion of origin of products and services.