This tool as for namesquatting has been around for over decade. I don't see a problem if you are setting up a brand and wan't to pick one that's free across the board (or make sure someone wouldn't over-squat you).

If your justification consisists of 'the other guy might do it first and reap the benefits', maybe you should rethink how you apply ethics in everyday life.

By 'reap the benefits' did you mean 'extort you based on your brand value'? Sure, there are laws now that prevent domain name squatting, and most platforms would give your brand to you anyway (provided you are big enough). But why go thru expensive hassle when you can solve this proactively?

All companies do that by registering their trademarks. I don't see how this is different.