As far as using top-level domains for testing, I am going to say that is also bad practice. Always use a sub-directory - call it TEST or whatever and host your test sites there. Sites in development sitting on a top-level domain is never a good look. The visitor to a top-level domain for a business expects a completed site.
Err.. no
Things are getting very muddied here.
So we have two sites, Tims original which points to his top level domain is stated as being bad practice and I'd agree
The second is Gary's (Initiostar) draft site in a subdirectory of a subdirectory which I thinks fine.

So what is it?