I agree that if a registrar gains explicit consent from the domain registrant through the redemption period, there is no harm no foul.
The title of this thread is NSI-- What Arrogance!, but put any registrar's name in the place of NSI and I think you have still have an accurate title. The registrar has no right to assume ownership of a domain name. And that is exactly what is happening if it can auction it off. I don't see a grey area here for the registrars. The domain should go through it's "cooling off period" then be dumped back into the public pool. Anything short of that is a money grab the way I see it, and an assumption of power no one intended them to have. Ivan Jenkins Microserv