I don't get the difference. If I acquire the y domain and make it work as a subdomain broker, it's the same thing no?
There is no subdomain/TLD bit
The Public Suffix List is the closest thing we have to the "subdomain/TLD bit", but afaik it doesn't include wildcards like `*.name`. It does influence TLS though (or possibly just browsers) in that a wildcard cert for an entire TLD or public suffix won't be honored, nor will a public CA issue such a cert.
Still, I'm not sure there's any easy technical fix for the .name debacle.
From what it sounds like, unlike domains under other TLDs, when you purchase a domain under .name you always purchase specifically the three-segment domain.
i.e. I own john.doe.name, you own george.joe.name. Once this change goes through, only "doe.name" can be owned, so who gets it?
You are technically correct, but Verisign billed buying an x subdomain as if the y domain was part of a stable infrastructure. Which it kind of was until they decided to pull the rug.