To humans and that is subjective. So if one is less valuable and one knows it then they may not make it, if it’s valuable to them then they likely don’t care, and if it’s more valuable to others then they are making it to sell at an appreciated price.
Unless you have a proposal I’m not sure how else it’s dealt with. There have been discussions on domain squatting in the past that are worth a read but not so much on the cost I don’t think.
Regarding squatting, this was my favorite solution by @Seneca RFC - Decentralised Naming System II - continuous auction (by Seneca)