Right on, Amp.
HQ, these guys are not taking hits from you, they are taking themt from Microsoft
These people who typed in these domains would have got a "DNS not found" search box in IE if these people didn't buy the different domain. Sure, they might have tried a different variation, and ended up at your site, but they probably will anyways. It's just not that complicated.
dewpoint, I don't think it's a thing to promote, nor have I ever done that. But given the level of the internet right now, I think it's pretty much a given that it can't be totally prevented. So if you rely that much on SE, then you will find a way to win there. Also, what if you sell Persian Kitties? Where do you draw the line?
It's all grey, man. You can't count on people following the rules, if the rules aren't actually "taboo." Instead, FIGURE out what they are GOING to do, and plan to make money off of them that way. When you realize what I mean, you'll be a happy man.
BP..never ate there, can't really help you :-/