Cybersqatting might or might not be "wrong", but "wrong" doesn't have anything to do with either private rules or government laws.
I'm not even clear where the government gets involved in this at all, for good or for ill.
Domain registrars accept money to list someone as the owner of a domain name. ICANN coordinates this action, approving registrars and setting some ground rules for how registration works. Most ISPs and site operators configure their networks to resolve non-local names only via ICANN approved channels. These entities are often all private sector corporations acting in voluntary cooperation with no particular government powers.
One of the rules ICANN set up is that you can't register a famous person's name and use the site to run a website about them without the person's permission. They require registrars to follow that rule or they won't approve them. If a registrar allows the registration anyway, there's a dispute process where the person can demand that the rule breaking registration be de-listed and then re-registerd as owned by the person.
Human rights and government and property interests don't come into it, it's a bunch of administrative policy used to coordinate voluntary action. It might work well or it might not. If you don't like the rules you don't have to use ICANN-rule-following DNS servers.