Hi Gavin,
This is worse than typical domain tasting by an individual, this is from the register itself! They have direct access to all the searches done on their system by trusting customers and then they hold the names hostage. Pretty low if you ask me.
Domain name tasting is bad enough and should be eliminated (ICANN is looking into the problems of tasting) then you have a reputable register come along and do something like this. Hopefully they take a hit for this.
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