Just another data point about this, not an argument for (or against) blocking a TLD, but personally I wouldn't register an .xyz again, due to what I presume is related to them having to fight abuse. I still have one site on there and have migrated another off.

My domain was flagged for abuse (it's a static site with a daily word game, no ads or anything else) and the TLD took it down. Not my registrar or host, the TLD itself. There was no communication on this, it took some effort to work out what even happened, and appealing was a pretty blind process of claiming to have fixed the issue and issuing proof (which felt a bit strange to fabricate proof that it was fixed, since no issue existed to begin with - I sent a screenshot of the page or something, I can't recall) and hoping they'd unblock it, with no communication at all beyond a place to send such a claim.

They did unblock it, and while I am sympathetic to them having to fight abuse, I still moved away from them.