gTLDs didn't really ever have any meaningful purpose though, that is kinda the crux of the problem. Postel didn't bother enforcing any sort of policy of what goes where so the gTLDs became completely meaningless.

Not officially, but the name "Generic TLDs" was coined to differentiate them as for general use, in contrast to country-specific TLDs at the time.

Restricting them to specific entities seems against the spirit to me.