This behavior seems to happen only when there is no more words in the list that can complete the current string. Otherwise, it shows only existing domains.
I guess this behavior helps to autocomplete the domain extension for less-known domains that are not in the search list.
It doesn't work correctly with third level domains.
speedtest.me.uk exists, but typing speedtest.me does not suggest it, and speedtest.me.u suggests speedtest.me.us first (doesn't exist).
(.me.uk is a second level domain category in .uk, intended for personal domains.)