This is true of most concepts and not necessarily an argument against policies about squatting. There are fuzzy cases of whether or not something is theft or murder such that we may struggle to produce a formal definition that satisfactorily applies. In those cases determinations are made about the specific case and possibly our definitions of the concepts or regulations are refined, but it’s not a reason to give up having policies or enforcement mechanisms against those acts, or a reason to not believe those acts are thing that exist and can be discussed.
A policy could simply refer to “squatting” and give large leeway in moderation decisions, or it could adopt one of the many definitions offered in this thread such as @kornel’s. Obviously those definitions are not exhaustive, deterministic mechanisms that will unambiguously resolve every possible situation, but they at least identify creating a crate for purposes other than sharing substantive, non-malicious code with community as against the policy of crates.io.
I tend to think the maven-like domain name model is the best long-term path for cargo, but that doesn’t mean easier and more direct policies and mechanisms shouldn’t be put in place sooner.