So the big lesson here is that you can make $100 million a year (for at least a few years) without adding any value.

So where do I sign up?

Seriously, I was concerned about it until I read the word "loophole" used. The only impressive thing the company did was bend/break the rules for so long and on such a grand scale without getting caught.

So when will they turn off the funds to the domain name squatters?

Not any time soon. Domain traffic converts well for many advertisers.

Just like someone can make a good amount of money playing Russian Roulette for money. But most who try that... and the risk increases with usage.