weathertop

Because they allow a domain holder to be creative.

.ly matches the ly suffix in English for example. So, thus you have adf.ly ... adfly.

An embargo on the word "privileged"... I thought I was the only one.

Indeed. But it is also important to understand that just because it's the Internet, doesn't mean speech is absolutely free and that there are not consequences.

As far as user-generated content, perhaps this is a nod to policing that content much more unless you have the resources to handle legal challenges that will almost inevitably come up.