I don't think there is anything wrong with domain prospecting and I too have a number of domains that I hold which might have commercial value later down the track.
It is the deliberate targeting of brand terms. I know I know, more fool the brand for not securing their brand domain, but I can't help feeling that it is just not right to register a domain in the hope that the owner of that trademark will eventually have to stump up and buy it off you.
I know its legal (where no trademark exists), I know its common, I just don't think its very ethical.
I don't have much sympathy with the bigger firms because ethics is not top of their list either, they are out to make as much money as possible, and by pushing the boundaries as far as they can without getting into serious trouble, or suffering a consumer backlash.
Take the recent backlash over the Cadbury's Crème Egg. Kraft quietly changed the recipe to use a cheaper chocolate for the shell, and when customers complained, Kraft spewed BS about how they never "officially" used the good chocolate anyway, so it's not really a change. They then tried to make fools of the customers by claiming it was always this way, and that the shells were always made from a variety of different chocolate formulae, and that it was nothing to do with cutting cost. They also took 1 egg out of the standard pack so it's now 5 instead of 6, and again tried to brush this off as there never having been an "official" pack of 6 to start with. They have pushed the boundary so far that the customers are lashing back, yet they are trying to hold the cost cutting ground they conquered.
If some smartass customer pushes back by squatting on a domain they could use in the future then it's tough, they should understand - it's all about the money, and sod the ethics. These big companies wouldn't even bend down to pick up the small amounts it costs to buy up these domains from the "little people".
It's different when a squatted domain is used to trick consumers, or worse defraud them, by pretending to be that company.
Domain squatting is a bit like buying up land in the hope that one day it will be granted planning permission for housing, which would make it's value rocket, and then selling it on to a developer at a premium price.