I think you’re right, but one’s chances of prevailing in cases like this depend on quite a few things, and the intent of the domain name holder is a key issue here.
In the OP’s case, if Rocky registered the name and never used it for anything at all, this is one thing that might demonstrate bad faith on his part. It would probably help the OP’s cause considerably if he could demonstrate to the court that Rocky went out and registered the name right after the two of them did business together.
A real killer in cases like this is an offer to sell. If the OP gets in touch with Rocky and says “Hey, that’s my name you’ve got registered there. You have never used it, you’re just squatting on it, and I’d like to have it,” and if Rocky then says “Sure, i’d be happy to transfer it to you–for a price,” that would (according to this site) constitute a bad faith attempt to profit from the name, and would greatly help the OP in his suit against Rocky.
In the case of lissener’s cousin, we’d need a lot more information in order to know whether or not she would have a shot at getting her name back. We’d need to know what the current owner of the domain is doing with it, for one. For example, if that person had the same name as lissener’s cousin, and was using the site as her own personal website, then it’s going to be pretty hard to demonstrate any sort of bad faith, especially if she’s not trying to capitalize on lissener’s cousin’s famous name.
Where it get somewhat more murky is if, for example, the domain was being used to run a fan site. The court would then have to weight the relative interests of the two parties in the case, and make a determination based on whether or not the owner was trying simply to divert business from the real owner of the name, or whether the fan site constituted reasonable noncommercial or fair use of the name.
Of course, if the owner of the domain is doing the same thing as Rocky, and just sitting on the domain hoping to make a buck, then lissener’s cousin would have a much better shot.
Unfortunately, many of the domain name disputes end up going to the party with the deepest pockets, rather than the party with the most reasonable case.