One of the purposes of trademarks is to protect the customer from being defrauded (ie the customer thinks they are purchasing a product when in fact it is not that product).
Ron Paul did try to purchase the domain name from the guy, the guy saw the opportunity to extort more money hence Ron Paul pulling the trademark dispute (which I completely agree with him that ronpaul.com belongs to RON PAUL trademark).
Another purpose of trademarks is to protect the MARK. In this case, the guy is obviously attacking RON PAUL (the trademark), painting him as hypocritical and made it more than obvious for the need for Ron Paul to own that domain name to protect his trademark in the future.
The only avenue, at this point and time, to resolve this dispute is the complaint started by Ron Paul, to establish if the domain name does belong to the RON PAUL trademark.
This is one of the reasons why IMO you need trademarks and copyright laws in a free market. Of course the arbitrators can be private in a true free market but that's not what we have now unfortunately hence going to the UN...
"If ye love wealth better than liberty, the tranquility of servitude than the animated contest of freedom — go home from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains sit lightly upon you, an