Eric Goldman a contributor at Forbes did a piece on small business and defensive registrations.
From the article:
This conventional wisdom plays on the worst fears of small businesses: If you don’t buy lots of domain names right now, you will forever lose control of your brand, and then you will lose your customers. Your business will be destroyed because you were too cheap to spend a few extra bucks buying just one more low-cost domain name.
Don’t fall for these scare tactics. They are part of a cynical sales pitch from domain name vendors hoping to get your hard-earned money by manufacturing new opportunities for mischievous domain name registrations—and then making you pay to prevent that possibility.
Defensive registrations are going to be talked about a lot more with the new tld program coming in the future. How many registrations can a small business afford ? Even if they can afford them, should they register them ? This will prove to be another confusing ip dilemma for many small businesses. They will get consulted and read articles on both sides of the arguement. If you are a pizza business in New York at JoesPizzaNyc.com for example, do you register JoesPizza.Nyc ? What if there is a .pizza and a .nyc and throw in a .restaurant. I think if there are many strings that integrate with one another than the .com really comes out the winner. JoesPizzaNyc.com may want to have the .nyc and the .pizza but he would be foolish to use them in branding imo. They would be pure defensive regs to keep from another Joe in New York who make a the pizza. Again IMO.