There are so many people who think they can make money from domain names and since almost all the dictionary words and decent names have all been taken by now, what is left is people trying what you said, amongst other names.
Exactly what it achieves I don't know as I don't engage in the keyword world, at all and never ever have.
You don't know who has registered all the extensions for a name and so it might still be owned by the same entity that owns the .com etc.