The .xxx gTLD has political and ethics problems.

If they had just introduced the gTLD at a reasonable price and terms they would have only had the regulation and adult content issues to deal with.

So, from the beginning they created their own problems.

With the proliferation of maybe 500 new gTLD extensions in the next 18 months or so the old school thinking of .com is king may just go down in flames. Hedge your bets or adapt or die.