Stephen,
I know your very passionate about this, may I ask, what are you personally, specifically gaining or losing with the advent of .UK?
Put another way: what is your motivation to spend so much time on this - are you owner one of the domains listed on your homepage?
The report is nothing more than self interest, masquerading as concern for others. Look at Stephens business model - its completely destroyed if .uk was launched like v1, with £20 reg fees and having to compete for each individually. Its going to take a massive (but probably not fatal) blow with v2 and having to pay for .uk variants of his domains.
Examples -
Handsandfeet.co.uk - £850
RackingandShelving.co.uk - £850
Shop4rent.co.uk - £850
I'll limit it to 3 but you could go through the portfolios and find hundreds of them. Overpriced low quality domains, where the corresponding .org.uk's aren't even registered at all.
I don't think you can have it both ways - either a domain is worth £850 in .co.uk and you should also own the .org.uk for reg fee, or you know you're over charging and the .co.uk is never worth close to £850 in the first place.
So people are operating this business model of stocking very low quality domains and holding them for however many years it takes for someone to come along, fail to understand the value of them, and buy.
If v2 goes ahead as planned Stephen now needs to put his money where his mouth is. You can't realistically refuse to pay £10 or whatever to pick up handsandfeet.uk, and continue the charade of the .co.uk being worth £850. So anyone holding a portfolio like this now has to pick and choose, and let a lot of them drop. I think realistically they are going to lose more than they gain if they double their costs and buy all these low value domains in .uk too, and double pay until a buyer comes along. As the buyer is going to expect them both, but not to pay double the £850.
I'm not going to use anyone else an example but there are other portfolio owners admitting they're going to dump a section of their holdings - its the only way they can realistically go.
So the financial blow to portfolio owners who went with the business model of bulk and not very good, is going to be massive.
The only way they can survive this is to get .uk cancelled completely (no chance of happening) or to have the domains handed out in pairs at zero cost (pie in the sky hope really, but slightly better than complete cancellation). Anything else which involves a new release and having to pay for the domains, is an absolute disaster business wise.
Anyway the above is obviously just my opinion of what is going on. Since Stephen is publishing his report with no disclosure of self interest (and using at least one of my domains as an example), I don't feel that its unreasonable to post publicly what I think is going on, or why.