Possibly. But say I'm starting a video-sharing website - I'm at a big competitive disadvantage when my customers need to type and remember an extra ___domain-name level compared to my competitors (who own '.video', '.movie', '.youtube', etc. while i might own '.bobsvideo.fail').
Except that, as discussed above, "youtube" by itself is not a valid host name. It would have to be "mysite.youtube"
Still easier than you having "mysite.bobsvideo.fail" I agree, but frankly most people don't even find sites via the ___domain name. They'll google "Bobs Video" and see what comes up.
