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The "cybersquatting" that is illegal in the US is not the same as the practice Sterling described.

late edit: Actually, a company with a trademarked name that buys half a dozen domains related to that name and runs across one other guy who has a similar domain he isn't really using is then more likely to be able to sue that one guy for "cybersquatting" under the US law than someone just getting into the market is to be able to sue the big company with the trademarked name that is buying up all the domain names. It's a ridiculous law and, ultimately, achieves an effect roughly opposite to what you seem to think it does.