amy's userpage hack does that (the domain.com/username) so you can probably look at her code and see how to apply it to the profile page.
And dunno why immortal says its not possible to do username.domain.com.
it might not be easy but I'm sure its possible. (for example at dreamhost I can have unlimited domains like that, so I'd just need a way to take all the users and have that domain forward to their profile page, but if you host your own site then I'm sure it'd be easier)
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