The real problem is that we'd have to add a wildcard to the public suffix list. That's it.

The public suffix list is the big list of all the URL suffixes that should not imply shared ownership of all their subdomains. For example the line

com

says "XYZ.com" and "ABC.com" should not be assumed to be controlled by the same entity.

Problem is, all 1st level domains registered to the .name TLD should be added to the list, and that's a lot of domains. The correct answer, IMO, would be to add a wildcard

*.name

but that would involve updating all the code that relies on the public suffix list to support said wildcard.