I disagree. Please see the XOOPS Certified Local Support Site Guidelines.
Local Support Sites are not built and/or managed by the XOOPS Project and XOOPS Foundation. They are built by community members for community members. They receive "Official Recognition" as a Local Support Site, but they are not "Official" XOOPS Project sites, there is a difference here.
"Official" sites are owned and managed by the XOOPS Project/XOOPS Foundation.
"Officially Recognized" sites are built by community members, for community members.
To force Local support sites to adhere to a strict guideline of theme and domain would be to remove elements of control over the site from the community that built it.
I thought we were trying to move away from a situation where the Project decided what the community could and could not do.
IMHO, the only websites that should be under the control and management of the XOOPS Project/XOOPS Foundation are www.xoops.org (Project Homepage) and docs.xoops.org (Project Documentation). ALL other sites should be built by and managed by the community.
Stupidity is not a crime. Therefore, you are free to go.