I hate to say it, but "domain squatters" pay for domains like everyone else. You have to take the shit with the sugar in a free society, not shit on everyone's personal liberties with Code of Conducts or "occupation" requirements. There's no perfect policy or "solution" that can fix every moral panic without causing other problems. And not every moral panic needs to be fixed either. That's life, sorry.
The fact that they can pay for it doesn't mean they're entitled to it as a logical matter.
I'm not saying a fix is or isn't needed, but there are all kinds of things we restrict despite ability to pay. For example, you can't buy a social security number without a person or a physical address without physical land to tie it to.