"the act of buying domains that you don't wish to develop in order to sell them at outrageous markup later does not provide value to society".

First of all friend (may I call you that?), please chilax. No need to be flabbergasted.

A couple of points I'd like to make. To begin with, in my belief system, as the owner of an asset, you (me or WHOMEVER), has the right to do with that asset whatever you wish.

If you buy something - for whatever intention - I have no right to project my beliefs about what is or isn't appropriate use for YOUR PRIVATE PROPERTY.

As an example, if you were to buy a plot of land (whatever your intention), does someone have the right to say, "you're not adding value to society" because you don't develop it?

I'm a firm believer that if a person doesn't know or appreciate the value of something, they are not the best owner of it.

But that's another issue.

Imagine this. You and I both have an equal amount of free time per week - say 20 extra hours to do what we so desire.

I decide to play online scrabble, write random HN posts and yell at the screen when people get answers wrong on Jeopardy.

You on the other hand, decide to use your time doing other things. You spend hours:
-reading through scientific journals (a good source of emerging technologies and future generic domain names that will be popular)
-analyzing data from keyword research tools
-charting data you found on DNSalesPrice.com

etc etc
After putting in the work, you find and invest in a small portfolio of domain names.

Now, one day I read The Lean Startup and decide I want to have a go at this thing called a "start up".

Doing whatever research I so decide, I think up a domain name.

Now, it turns out that the domain name has been registered.

By whom?

By none other than you.

So, I send an email and ask you to quote me a price.

When I get an email from you quoting a price that's in my mind at an "outrageous markup" - I start blasting you on forums.

Forget the fact that:
a) neither of us had some kind of unfair advantage.
You decided to put in the work it takes to find and acquire these assets - I on the other hand decided to enjoy my leisure time

b) Another party comes along who sees the value in your "outrageous markup" and happily pays you. Not only that, they turn the investment they made into the asset they bought from you into a 25+% ROI (or more....far better than the stock market, wouldn't you agree?)

c) They also substantially lower their customer acquisition costs via their media buys with the right strategic domain investment (content on this relationship here - http://www.ozdomainer.com/domain-names-podcast-episode-19-wi... 15:30 difference between good domain and a bad one is [approx] 4 to 1)

One could go on, but I'll stop here.

I find it shocking when people blame other people for "extortion" for making smart business decisions that, had they had either the foresight or the work ethic, they could also have done.

It's one thing if one fraudulently stole someone's domain then demanded they pay you for its return. Bu when one party takes on the inherent risk involved in ANY kind of investment - then have others lambast them for doing so?

That I can't understand. Having said that, I'll end with a favorite quote of mine (paraphrased Emerson) - "I may not agree with what you say, but I shall defend to the death your right to say it".