> It kind of seems like an insane TLD structure to begin with, right?

It's been around for years. I seem to remember this issue coming up around 2001 where originally .name was for third level registration (i.e. john.doe.name) and changed to second level it a few years later and caused some problems... https://publicsuffix.org/ talks about it in light of architectural limitations of domain names.

> can Joe set a cookie on all of .smith.name?

That can happen. I seem to remember ancient browsers made it so .name (and other non-generic TLDs) required three periods. I think country code domains and new generic TLDS caused the browsers to change it.

It's pretty screwed up, but a lot of the people with .name domains have had them for a very long time. Sad to see them all lose their identity online that way.