This has probably been covered before but wont .uk instead of co.uk increase the value of UK domains internationally?.
For example would international domain investors be more keen to invest in .uk rather .co.uk. Having 3 less digits has surely got to be a some sort of bonus. Also would there be some uk business's who it would benefit keeping a uk domain ext rather than com because of the shortened version. Maybe there are some clues in Germany's main extension .de.
SO would this proposal not boost the UK domain industry as a whole to have a similar shorter extension to the likes of Germany?. If yes would it not be reasonable to question the motives of the people opposing this.
I think you are asking and answering your own questions as to why it's not fair and morally proper to introduce .uk as a competitor to the co.uk which has already been sold on a massive scale as the uk business extension.