That's bullshit. That would mean every domain name out there could be taken by somebody with a trademark application, a pen, and the application fee. Sorry, but just owning a trademark shouldn't be enough to grab a domain, particularly if the domain existed prior to the issuing of the trademark.
There's no need to play the "would mean" game -- this is the system that already exists today. I described the rationale behind the current trademark and UDRP system... a system that has been in place since 1999. Is it "bullshit"? Do you see domains getting stolen left and right?
Anyone with a trademark, a pen, and an application fee can take anyone else's domain -- IF the actual use of that domain is creating a likelihood of confusion with the mark as to the source, sponsorship, affiliate or endorsement of the website.