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Adding many thousands, let alone millions, of real (as opposed to say IDN aliases) TLDs would stress the root servers, and create a huge single point of failure for custom-vanity TLDs.
Many ISPs / resolvers cache the root server addresses and the corresponding TLD zone data, so if the roots are unavailable / busy or whatever, it's generally a situation that can be worked around - that won't be true in a custom-vanity TLD situation. The upshot being that traditional, popular TLDs would end up being more reliable in such instances.
And from a business aspect, such a scheme would in essance be a monopoly far worse than Internic ever was - because the root would directly be serving resource records (ie. name server addresses) for end-user domains in the custom-vanity TLDs.
Bottom line, in my view, is custom-vanity TLDs (a glorified keyword system) is unlikely to happen anytime soon, if ever.
Ron
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Domagon - Website Management and Domain Name Sales
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