CircleID

Moderation needs to be a factor, but currently it's too 'wild west'. I have many personal names of prominent business people as Domain Names. But the fact that I can do this is surely undesirable.
This subject is also covered in Web-Law.

Great post Mark:

It is amazing how many politician names are being cybersquatted.  Most of these 'famous' people fail to do anything about it. As to your question, registration of a famous, personal or celebrity name to preclude registration by the person involved, I believe, would constitute bad faith under the UDRP and ACPA.

There is more information at the post Personal, Famous, Celebrity and Proper Names Protected Under Cybersquatting Act.

Also see Protecting Your Domain Name On The Internet

Political Candidate Cybersquatting: Hillary Clinton's Name Most Squatted

Cybersquatting On The George Bush Library Name