The cycle is reinforced by people giving the name of their grand parents to their kids.

While the registrar should have made more to understand the situation before acting, it’s important to keep in mind that according to itch.io, the request was not a DMCA takedown but an accusation of “fraud and fishing”. There’s probably a very large legal exposure for a registrar to let criminal website use their service if they are made aware of it, so reducing their liability is probably their highest priority.

BrandShield is inexcusable for using such a claim as a first step.