I'm surprised they don't just do that, and maybe even to go a little further, disallow renewals so you can phase people out and reclaim domains you can sell.

Whether disallowing renewals or terminating them tomorrow, there's still the same core problems, only the date of the offense changes: (1) seizing people's names that they've established, breaking innumerable things including email and server hostnames, and (2) the possible resale of the 2LD fraser.com to a third party who will be free to do malicious things like reading OP's email, redirecting his traffic, or extorting him, to sell continued access at any price demanded.