Better still ...
"Nominet's new proposal is only a partial solution to these problems, said Barker. It allows a claim to be lodged for £10 and, if it is unopposed, the name will transfer for a further £200 rather than the £750 fee payable if the claim has to be ruled on by an expert."
That would make more sense if the SQUATTER had to pay the £200.
Anything else is bolting the stable door after the horse has bolted. The better way would be to make squatting a financially risky business, such that any person who registers a domain name for squatting purposes does so in the full knowledge that they MAY if challenged have to pay considerably more than they stand to earn from the squatting.
"You only get one chance"
That is also wrong. The first round should be to present a simple paragraph that sets out in very general terms why the complainant is challenging the registration. A simple claim for the domain of widgetfactory.co.uk might go "We have continuously marketed a product under the name of WidgetFactory since 1987 and can find no evidence that the registrant has such a product". If the squatter doesn't respond then the case is won -- but if the squatter provides evidence to challenge the claim, then the complainant should be allowed further rounds until one or other party concedes the dispute.