I mean IANA or whatever literally made up a standard where two letter TLDs were reserved for countries even if they aren’t how those countries refer to themselves, see gr for Greece. I’m assuming .io just stands for Indian Ocean in this case, which seems like probably not how the chagosans self identify. Then you have countries like Montenegro that have .me and realized it means something in English so capitalized on it by licensing a company to resell .me domains.

I don’t think I have any particular point other than I think it’s dumb to have a system of artificial scarcity be the only alternative to having to remember the IP of every damn site I want to use.