“Featured domains” are domains that Brandpa’s staff have rated most likely to have high and broad appeal. We grade all our domains internally as part of the appraisal process; the ones with the highest scores (approximately the top 20%) are cycled at random on the homepage.
We’ve experimented with the homepage a great deal over time, and our data suggests that showing new visitors some of our best names makes it more likely that those visitors will explore more domains. It’s like a magazine cover: you show your most appealing headlines first, to get customers to read the rest.