So, Google decided to make the Internet more unsafe (because why not) by making .ZIP and .MOV TLD extensions accessible for the public. News
Well, not really but that's the general complaint on the release of the news.
Here is a very good explanation of how .ZIP TLD can be a security threat by Bobby Rauch.
And here is the counter argument for it by Eric Lawrence.
My thoughts
I personally feel this is a valid threat because of the simple fact that most users are not technically aware to the extent of even being able to understand how this is a threat.
Next, examples like .SH are not really valid for these TLDs because again, common users are far more likely to download a .ZIP file on a casual basis than a .SH file.
That said, the HSTS argument is completely valid (and is a big silver lining provided that those unicode characters won't be disallowed) and will get the malicious domains suspended or marked as spam but these domains can still do some damage in those short windows.
Why are these TLDs even made available?
Well, they are made available definitely not with the intent to make internet more unsafe. But TLDs like these help the internet in multiple ways.
ChatGPT does a much better job in explaining this, so here's its answer:
The introduction of new generic top-level domains (gTLDs) serves several purposes:
1. Increased Domain Name Availability: The primary motivation behind releasing new gTLDs is to expand the pool of available domain names. With the rapid growth of the internet and the exhaustion of traditional gTLDs like .com, .org, and .net, the introduction of new gTLDs allows for more choices and availability of domain names.
2. Branding and Differentiation: New gTLDs enable businesses, organizations, and individuals to create domain names that are more specific and relevant to their brand or industry. For example, a company in the automotive industry might choose a .auto domain, while a non-profit organization might opt for a .ngo domain. This allows for better branding, differentiation, and recognition within their respective sectors.
3. Market Competition and Innovation: The introduction of new gTLDs promotes competition among domain registries, fostering innovation and new business opportunities. It encourages registry operators to offer unique services and features tailored to specific industries or communities. This can lead to enhanced user experiences, specialized online communities, and improved online services.
4. Localization and Regional Identity: Some new gTLDs are designed to represent specific geographic regions or communities. For instance, city-based gTLDs like .nyc, .london, and .berlin can be used by businesses and individuals associated with those cities, helping to establish a sense of local identity and online presence.
5. Niche and Industry-Specific TLDs: New gTLDs also cater to specific industries, interests, or communities. For example, there are gTLDs like .photography, .tech, .fashion, and .guru that cater to photographers, technology enthusiasts, fashion brands, and consultants, respectively. These industry-specific domains allow businesses and individuals to align their web presence with their specialized niche or expertise.
Overall, the introduction of new gTLDs aims to provide more options for domain name registration, promote innovation, enhance branding, and create a more diverse and inclusive online environment.
So, that way the .zip top-level domain (TLD) is the perfect fit for organizations specializing in file sharing, storage, and download technology, or for anyone offering speedy and efficient online service. (reference)
What should you do?
Nothing much really except be wary of malicious links more and click links provided by trusted sources and be more stringent in clicking links that contain these TLDs anywhere in their URLs. Easier said than done ha!