I think Ed has gone to sit in a darkened room
I've not got as deep understanding as some about DRS but some aspects that make the system appear to be unfair are.
1) The respondents domain portfolio can be brought in and used against them as evidence.
This wouldn't happen in a court, the case is judged on it's own merits, not the respondents past 'convictions' or the fact that he's been naughty and registered 'bmwXXXX' in the past so he must be a serial TM infringer.
2) You buy a domain because you decide that it has value and then you have to extract the value from it by selling it, offering it for sale, advertising on it etc. This proves nothing, but to Nomient this proves you're a no good squatter, go directly to jail and loose the domain. What constitutes bad faith really needs to be reconsidered.
3) TradeMarks are odd beasts and my understanding is that TM rights don't just cover a word but extend to font, style, and are only relevant within an industry sector. ie "cre8" could exist as a TM for a design firm but it could also exist as a car brand and TM. We've seen a massive volume of registrations go through for sex.eu all supposedly protected by TM. Where does this end? Yes protect TM but there's a limit. How long will it be before we see A loose a DRS to B over TM infringement who then looses a DRS to C because they also claim a TM.
TM's a very specific, each one exists because it is unique. Domain names don't provide the same degree of differentiation, how will you cope if 50 companies all started a DRS because they claim TM rights over sex.co.uk