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Have a look at this analysis by A. Michael Froomkin, Professor of Law at the University of Miami, and a Member, WIPO Panel of Experts, Internet Domain Name Process: http://www.law.miami.edu/~amf/quickgui de.htm

In short, Froomkin says the plan is seriously flawed, and constitutes a radical subversion of existing legal checks and balances:

• Bias. The plan is biased in favor of trademark holders [as opposed to others using the web as a means of speech and press];
• Enabling censorship. The WIPO plan fails to protect fundamental free-speech interests including parody, and criticism of corporations;
• Zero Privacy. The WIPO plan provides zero privacy protections for the name, address and phone number of individual registrants;
• Intimidation. The WIPO plan creates an expensive loser-pays arbitration process with uncertain rules [Plaintiff gets to choose rules anywhere in the world!! -- not just in defendant's country] that will intimidate persons who have registered into surrendering valid registrations;
• Tilts the playing field. The WIPO plan would always allow challengers to domain names registrations to appeal to a court, but would often deny this privilege to the original registrant;
• Smorgasbord approach to law. Instead of directing arbitrators to apply applicable law, WIPO proposes using additional, different, rules it selected-rules that will often disadvantage registrants.

Froomkin gives a link to his detailed (50-page) analysis. I think this proposal needs to be sunk!