I agree with Milton that lifting the restriction of registry-registrar
vertical separation would probably constitute bad policy, on top
of the process that has been used to develop it.

There has been discussion about this issue since the White/Green
paper days and overall as far as I remember one of the strongest
arguments in favor of the current two layer structure was to promote
competition and give registrants a "choice".

Separation also provides a clear demarcation of roles and responsibilities.

Allowing vertical integration by omitting the restriction in the
gTLD Applicant Guide without consultation with other constituencies,
particularly non-commercial, will be a bad move for ICANN, and
imho will violate several of ICANN's core values as stated in
its bylaws:

"4. Seeking and supporting broad, informed participation reflecting
the functional, geographic, and cultural diversity of the Internet at
all levels of policy development and decision-making.

5. Where feasible and appropriate, depending on market mechanisms to
promote and sustain a competitive environment.

6. Introducing and promoting competition in the registration of domain
names where practicable and beneficial in the public interest.

7. Employing open and transparent policy development mechanisms that
(i) promote well-informed decisions based on expert advice, and (ii)
ensure that those entities most affected can assist in the policy
development process."

You may find interesting the following related article from Mike Palage:

http://www.circleid.com/posts/domain_name_registry_registrar_vertical_separation/

PS: I agree with Wolfgang to soften/diplomatize  the comments
about the staff, lately they seem to overreact in a negative way to
any kind of criticism.

Regards
Jorge