I believe he would need to use the explode function rather than the implode function... implode is used for joining elements in an array:
implode -- Join array elements with a string
Description
string implode (string glue, array pieces)
Explode is used for splitting a string by a seperator:
explode -- Split a string by string
array explode (string separator, string string [, int limit])
Instead of
$domains = implode("\n", $textarea);
you'll want to use
$domains = explode("\n", $textarea);
However, if you want to get the domain names back into the textbox, you would use implode.