A fairly standard practice actually. Hard to say if this is really what happened here though.
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Do we know that's the case here? That there wasn't something actually better that should be there and just had some issues. Progress doesn't really work the way you describe it.
progress? ignoring the EPIC FAIL for the moment, whats new in the DNS front since like... al gore invented the internet?
jokes aside... this surely looks like someones pet project going bad.