For what it's worth, owning a domain and not developing it is not "domain squatting" which is defined by law as "registering, trafficking in, or using a domain name with bad faith intent to profit from the goodwill of a trademark belonging to someone else."
http://en.wikipedia.org/wiki/Cybersquatting
There is nothing wrong with owning a domain and not developing it. It's the same as making a speculative investment, just like in real estate or any other asset. We all wish we were there in 1990 to scoop up the best names, but just because we weren't doesn't make the smart people who did unethical.
Getting a domain through registrations does not do this, because it requires only registration not payment. For a better analogy, compare how easy it is with the requirements of the (US) <a href="http://www.archives.gov/education/lessons/homestead-act/>... Act of 1863</a>. It required improving the land over a five year period and imposed a size limit. It is easy to imagine what would have happened without that requirement: a few people would have made vast claims, far beyond what they could develop.
I think a better analogy is registering a corporate name or trademark. If you don't use it, you lose it. You can't just register it and then prevent other people from using that name indefinitely unless they pay you off.
Clearly, I'm not in the my most forgiving of moods, tho
Shakes fist at UK employment laws (but that's a different story)
Although I've also had luck just emailing the contact for a domain, and finding they were willing to give it up. Worst case scenario is some squatter overvalues it and won't sell for a reasonable price. But it is always worth asking.
I even had one person randomly email me offering $500 for one of my domains. I didn't reply right away, and two hours later, he upped the offer to $1000. I had the cash in hand by the end of the day. Easiest money ever.