To be honest, I think the truth is that nobody (that is to say, most of the general public) cares.
And that is why Nominet have little to worry about over this.
It was the same with ICANN and the new registries when .info and .biz were released.
They calculated correctly that laissez faire would win the day.
Yes, some people protested, but afterwards life just carried on.
Registries and registrars exist in a symbiotic relationship. The 'At Large' sector of ordinary internet users are listened to but they are ineffectual sideline players.
The key question I'd ask both Nominet and Fasthosts is this, when they justify the 'window of opportunity' when registrars could mass register because the price was reduced to zero so it cost Fasthosts, Ionos etc zero to pull off the stunt:
If this was allowed to give .co.uk holders more time to register (after 5 years!)... why didn't Nominet just extend the period to 6 years in the first place? On the basis of their 'principles' of protecting the .co.uk holders, Fasthosts should be given another 'zero cost' window next June.
The claimed concern about businesses losing their brand identity with .uk is spurious.
They were happy to create the problem by introducing .uk in the first place.
Then they set up a process, saying the public could register the names after 5 years. Now they have allowed that process to be compromised but, as I say, no-one significant really cares, and registries and registrars benefit by existing for each other.
Should there be a distance created between people involved in registrar business and the people involved in the UK's registry administering the UK's namespace? I'd say there should (apologies to all here who are Nominet members). Otherwise there is an obvious conflict of interest in the administration of the UK namespace.
But most of the public and politicians don't seem to care about any of this.