The line that jumped out at me is
Berlin's businesses and citizens will flock to the domain because millions of people regard the hip European city as a part of their identitiesI suspect that Wired is referring to the potential of Berlin's citizenry liking the idea of a ".berlin" based email address rather than a URI identity (ala OpenID, LID etc) in the new domain.
Nevertheless, it does suggest the possibility of personalization for such URIs beyond a user being merely able to pick their identifier in some domain.
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