>>themih+4r1
Yeah you're right - Namecoin has a massive squatting problem. It costs only pennies to register a name which doesn't help.
One possible solution is a proof of work for name registrations, similar to the Onion Name System [1]. There is a short talk by Jesse Victors that explains it nicely [2].
[1] https://github.com/Jesse-V/OnioNS-HS
[2] https://youtu.be/zZzOVKPcIMg