Kaz,I think the problem is not with .name, but that simply noone wants a 3rd level domain. We has not been offering .name because it just did not fit in with all the regulations and problems. However, I think there would be a demand if 2nd level were available.
We have no immediate plans to offer second level .name domains at this time. Market demand has proven less than worthwhile with respect to .name.
(Scary fact) We have way more resellers than we do .name domains registered.
That is not a viable indicator of that TLD's success. Should demand increase
we will reconsider, however I am not inclined to devote further resources to
this TLD since the ROI is deep in the negative.
- Csongor