I find the "Abusive Domain Use Policy" proposed by Affilias to be lacking enough sanity checks to be implemented as-is.  If a domain or a hosting account is temporarily hacked by a third party and used for phishing or malware this would, in theory, give the registry grounds to delete the domain.  It would be unfair to punish a law-abiding registrant by deleting his or her domain, and this policy merely shifts the potential for abuse to domain registrants.  For example, a competitor might hire a hacker to plant malicious software on their competition's website, knowing that the registry will delete their domain.  The registrant will, most likely, be guilty until proven innocent in this case. 
 
The policy, as defined, will undermine confidence in the .INFO registry and, as users see the risk of losing their domain, their business and their livelihood for reasons beyond their control, they will chose an extension other than .INFO.