Exactly. I guess I just wanted to understand the second approach better, which to me reads as the creation of new tlds that would be separate from any other existing tld, and would mean if applied to ".com", a separate .com IDN TLD would be created, not connected to our IDN.com. But you are right, that would be tough as hell I imagine. Maybe they will go dname or will use both ways in some form like you suggest.
I did write someone from Verisign just to get it clear in terms of what this second approach means exactly.
In any case its great to see some action from ICANN. Thank you IE7 and China