I have a couple of suggestions to help the .nv registry grow even bigger:
1) Incentivize owners to develop their subdomains. The more successful, developed websites there are in the .nv.com extension, the more other companies will want their own. Offering discounted web design services, long-term registration discounts or registration rebates may do the trick.
2) Open an office in Nevada and make it even easier for people to buy their subdomain names. Believe it or not, a majority of the people out there don’t know how to register a domain name – let alone manage it. If they make buying a subdomain a simple process with an easy to reach account manager, more people might sign up. Also, it would make more sense for the “Nevada Registry” to be located in Nevada.
3) Hire a staff of sales people to sell the subdomains door-to-door. Equip each of them with a laptop and wireless access to allow registrations on the fly. Set-up a sales booth at malls, fairs, or anywhere else that people may congregate in order to get the word out. The primary target audience is businesses in Nevada, but the sub-target should be citizens of Nevada.
The one downside to subdomains that I see is that doing this is a long-term commitment to this type of business plan. Once people begin buying their subdomains, it may be very difficult for the owner to change direction without litigious implications. However, if the ownership nv.com wanted to do this, it could conceivably develop NV.com into something else while maintaining the subdomains for their customers.
I hope Google fights this and wins, because this claim seems over the top to me.