How would you propose anyone being able to offer a new second level .uk extension if widespread second level migration to second level domain registrations was rolled out? The second level would be full of registrations. All existing registrations are at the third level at the moment. It is impossible to successfully have the ability to offer new third level extensions and simultaneously allow open registrations at the second level.
Private companies could sell subdomains under eg .shop.uk.
Or nominet could reserve a few for future official use.
I just don't think that anyone would want them, as the direct.uk would become the most desirable extension.
So worth the exercise and the £millions repainting, reprinting and readvertising when right now there appears to be no problem with people being able to find web sites and other services at .co.uk domain names because .co.uk is already the pinnacle .uk extension?
We've coped for fifteen+ years very well and .co.uk is established and understood.
Rebranding would be a hassle, but it would be entirely optional if it was simply used as a redirect to get to the existing .co.uk
The whole proposal only makes sense if .co.uk and direct.uk end up at the same site.
Given time, I suspect that most site owners would eventually prefer to migrate their branding to the direct.uk, especially when big companies use it in advertising all over the place.
At that point, their .co.uk would point to the direct.uk, so users will still end up at the right place.
In the past, I have found myself saying 'mysite.uk' when describing it to friends, knowing that everyone understands I really mean 'mysite.co.uk'
It's only 3 extra letters, but it is extra hassle to type and describe - in comparison to how things should have been from the start.
To me, it just seems like a good chance to correct things, and bring the uk namespace into line with what is going to be the new standard soon.
I would prefer an automatic instant 'upgrade' at registry level, but no doubt nominet will find a way to make users pay twice, if they decide that .co.uk owners will get the rights after all.