TW Cable, RCN, Embarq, Verizon - the list keeps growing of the ISP's using DNS redirect. There are a few companies encouraging this technology (including Bare Fruit, a company I worked with not too long ago). It was hard to get traction for DNS redirect because of the "defiled user experience". If they all did it -- and it looks like that time is coming -- then no one would care. I'd rather see a 404 blank error page, but the domain squatters who put up misspelled word pages filled with ads, pop-ups, and malware deserve to lose the income. [see story at DSL Reports].
UPDATE: VZ stands by DNS Redirect at PCWorld.