There are lots of stupid startups. Why would the ones behind these top-level domains be any different? ICANN's role isn't to pick the winners, its to manage the overall framework. Perhaps .sex will succeed where .xx fails. Or not. But you can't blame ICANN for failed .tld business models anymore than you can blame YC for funding failed startup business models. Its just part of the landscape. Now stop ranting about it and go do something productive. ;-)
I'm not blaming ICANN for failed business models. I'm blaming ICANN for turning what ought to be a matter of public interest (i.e. the governance of the Internet) and turning it into a situation where you can turn up with a half-baked idea and a big pile of cash and be able to start churning out new domain names.
