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L’Oreal is using “closed generic” .makeup in an interesting way

Kevin Murphy, September 18, 2017, Domain Registries

What do you call a registry that defensively registers names on behalf of the very people that would be its most likely customers if the TLD weren’t so hideously overpriced?
L’Oreal, apparently.
About half of its .makeup new gTLD comprises the names or nicknames of social media “influencers” in the make-up scene, and they all seem to belong to the registry.
Ironically, these are precisely the kind of people you’d expect to actually go out and register .makeup domains, if they didn’t cost close to $7,000 a pop.
L’Oreal put a $5,500 wholesale price-tag on .makeup domains, evidently as a Plan B to avoid actually having to sell names to people, after its original plan to keep the string as a “closed generic” failed due to ICANN politicking.
As you might expect, uptake has been minimal. The zone file currently has about 266 domains in it.
Beyond L’Oreal itself, there are defensive registrations by companies not remotely related to the make-up industry, such as BMW and Intuit, and registrations by competing companies in the cosmetics industry, such as Christian Dior and Estee Lauder.
But there are also something like 150 .makeup domains that were all registered at the same time, this April, representing the names and social media handles of young women who post YouTube videos about makeup for their often thousands of subscribers.
It turns out these women are all participants (willing, it seems) in WeLove.Makeup, a web site created by L’Oreal to promote its products.
The site is basically a social media aggregator. Each “influencer” has their own page, populated by their posts from YouTube, Instagram, Twitter, and such. It’s maintained by Findie, which specializes in that kind of thing.
The domains matching the participants names do not resolve to the site, however. They’re all registered to L’Oreal’s registry management partner Fairwinds and resolve to ad-free registrar parking pages.
The names were registered via 101Domain, which prices .makeup names at $6,999, but I’ve no idea what payment arrangement Fairwinds/L’Oreal has for this kind of thing.
This is what a wannabe closed generic can look like, it seems — the registry pricing its customers out of the market then registering their names on their behalf anyway.
Is this “innovation”?