I read the PDF, and thought I understood, but you're asking a good question. I did some research, and it turns out that when .name launched in 2001 (under Global Name Registry), it used this really weird shared-SLD architecture where the registry retained the second-level domain (e.g., rpdillon.name) and sold independent third-level domains (e.g. bob.rpdillon.name and jane.rpdillon.name) to completely unrelated individuals through ICANN registrars.

I've managed multiple third-level domains for decades, and didn't realize this distinction between registry-managed domains and having the registry delegate third-level domains to the authoritative servers...the latter I'm quite used to, but this change is about the former.

I've never used .name, and while I was initially skeptical, it seems like this is a pretty reasonable move.

Don't many ccTLDs do something like that with the ".co.xx" second-level domain? (e.g., ".co.uk")