Comment by Arrowmaster

When the TLD first opened up you were not allowed to purchase {lastname}.name, it was restricted to third level domains only in an attempt to lure in customers wanting {first name}@{lastname}.name as an email address. But they didn't make it easy to configure that email redirect if you used another registar than verisign, and email has evolved.

Later in a desperate search for MORE MONEY, they opened up 2nd level if no 3rd level already existed under that 2nd. This sounds less like another search for more money with new sales as people are saying, but a reduction in unique domain handling and cost cutting (they can shutdown all those email redirection servers).