This bit from 1&1. They say 'annoying'. Annoying to whom? Annoying to 1&1 because it stops them from making money from someone elses domain registration. This wording isn't necessarily in the best interests of the registrant.
Argo,
The problem is that this is actually a business model issue, not a Nominet one. If one or other ISP or hosting company decides this as their policy, it is not really Nominet's place, nor do I think they'd have the right, to dictate to an individual tag holder how they should formalise their own policy or service level agreement. That said, I can entirely see where you guys are coming from and I personally don't like this either because it theoretically places the registrant in breach of Nominet WHOIS opt-out rules when it may not be the wish of the registrant to have their domain name pointing at a PPC page in the first place.
Regards
James Conaghan