I can see your point but it also stifles development of domains at least on anything that has dropped in the last few years.
I've just had £1000 offer turned down (thankfully now) on a nice .co.uk that dropped a few months back I wanted to develop.
What happens to people who plan to develop these names It's impossible to sink any money time or effort into such a co.uk now If someone just sitting on the org.uk me.uk can come and take the premium name in a few months time.
This proposal might be slightly fairer but it still makes a mess of the UK namespace until this is all sorted.
Anyone care to estimate how long this could drag on for
If it ever happens it will be through nominet simply trading the co.uk for a .uk and slowly phasing out the co.uk, they cannot live side by side.