Except it does little to nothing to reduce confusion. It does nothing to fix the problem of people signing up using an email with a typo or with an email that doesn't actually belong to them.

This on service providers to implement secure access properly.

I'm not thinking primarily of transactional emails here. If Gmail allowed dots and allowed registering both "jane.smith" and "janesmith", Jane Smith would be well-advised to register both, because it's going to be the most common mistake people make. It's the same principle that suggests that if you own a .org address you should probably go ahead and buy the .com, too.