Well it's a good idea, but i can see some small issues with it.
1. it's bloody annoying going through the usual endings when i can't remember/haven't been told the right one. If thousands more are available it's just going to get worse.
2. I see they are thinking of allowing arabic/crylic type domains. That's going to make it difficult for the millions of us who don't have a specialised keyboard. Going into the symbol list is effort.
Saying that, a website with a scripted domain will probably have scripted writing, so i doubt i'll go on it anyway. Also, i hardly ever actually type an address in.