ICANN is full of bottom-feeding scum-sucking algae eaters.
They don't care about policy which furthers the best interests of Internet users they only care about enriching themselves and their fellow algae eaters at the expense of Internet users everywhere.
If you want to encourage domain owners not to lie when registering a domain the only policy available to you is offering *EVERYONE* privacy controls so there is less incentive for them to do so.
I only see two possibilities. 1. You are up to shady shit in which case you won't much care if your domain is taken away given it takes two seconds to register a new one.
2. You are a legitimate business or individual willing to go through extra hoops including paying extra fees to protect your privacy (while still offering some way to be contacted) from the mobs of idiots who inhabit the Internet. You and ONLY you will be fucked over by ICANN policy.
Those in the first category will not be affected in any way because they don't give a shit about rules and there is no credible threat of force to keep them in line. This only hurts people who want to protect themselves.
What I would very much like to see operators get together and create just the threat of an alternate root to put these assholes on notice.