Read This...
The term is derived from "squatting", which is the act of occupying an abandoned or unoccupied space or building that the squatter does not own, rent or otherwise have permission to use. Cybersquatting, however, is a bit different in that the domain names that are being "squatted" are (sometimes but not always) being paid for through the registration process by the cybersquatters. Cybersquatters usually ask for prices far greater than that at which they purchased it. Some cybersquatters put up derogatory remarks about the person or company the domain is meant to represent in an effort to encourage the subject to buy the domain from them.[citation needed] Others post paid links via Google, Yahoo!, Ask.com and other paid advertising networks to the actual site that the user likely wanted, thus monetizing their squatting.
That is the 2nd paragraph from the WikiPedia entry for the term "CyberSquatting"
Debate this many times over...morally, ethically, add TM infringement, etc and thats how some see domaining in such a negative light.
Dont lose sleep over it just do your best to be one of the good guys.
No TM's, fair prices, No disaster/tragedy domains, try to help people match up their Business to that perfect domain, maybe give a couple away to a charity, Help guide the new domainers, etc.
Most of the domainers I have met have been some of the coolest people I have ever met in my life so dont worry, just be cool.
Slowly but surely, we will change the public's perception of us to a more positive one. imo