I've actually been able to pick up desired domain names that had squatters when they went back to the registrar, without having to use a backorder. But glad this worked for you!
Once upon a time, I had one of the first outdoor web cams, which I called the San Diego Baycam. I say "called", because it was actually hosted at live.net (since sold, for a pretty penny).
Of course, squatters then set-up on "SanDiegoBaycam.com" (and .org). So, when I sold live.net and wanted to have a domain to possibly host the webcam again (I haven't done so, and doing so at this point would need a camera update) I noticed the squatters.
So, I registered SanDiegoHarborcam.com (and .org) which never really resonated with me since nobody calls it San Diego Harbor here. (Just like nobody talks about South Detroit, except in that popular Karaoke song... But Downriver just doesn't rhyme right...)
Anyway, SanDiegoBaycam.com/.org eventually just went back and I picked them up for the registration fee. But perhaps only happened because the original site went dark and there was no reason for the squatters to stay.
More recently, I picked up a 5-letter pronounceable .com for $450 from Sedo for development. This is the ideal situation - listed at a fixed price with an ad right on the parking page. Smooth transaction, if a bit drawn-out. (Took a few days, but at least no weeks of endless email negotiation and/or lack of response by the owner.)
It was a no-brainer to buy. Good deals are out there!
(For the curious, it was a "r" site - common word with an "r" ending that should be an "er". Think Flickr. But one letter shorter since the base is a 4-letter word.

Couldn't get the "er", no response from the owner. But that can be bought later if the project is a success. I protectively registered as much as I could for both spellings to keep out squatters, including the .mobi and .co.)
P.S. Just researched the history, and this is just what Flickr did. When they started, the owner of flicker.com wouldn't sell, so they registered flickr.com instead. They've since bought flicker.com to pick up the misspelled (or correctly-spelled, depending on your viewpoint) typed-ins, maintaining the Flickr branding.