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In another way it gets back to a time when other TLDs (Top Level Domain) were debated to filter types of domains. The argument stemmed mostly around decency on the net.

I don't know of any example but like having a phone number close to that of a whore house, or living next door to one. I expect some domain names and sites when queried in the SEO fashion might have a slightly different result than what was intended.

In a competitive market one could collude and mimic a web site (affiliate)to closely resemble  your competitors "goods" and sink them like a whore on steroids.