Your solution seems tangential to the problem brought evident here, with how ICANN and VeriSign are able between themselves, to turn 22,000 or so tangible name registrations into dust, without any retribution or refund. The funny thing is that DNS -- where these names actually reside -- is distributed, but it's not as federated as to prevent the kind of takeover. Worst case, a rogue state can declare their own root name servers with their own fork of all name records including 3LDs for `.name`, show the middle finger to the U.S. and call it a win -- except that real people in the U.S. or otherwise using DNS servers that don't hold the forked data -- will fail to connect to the services expected at those names as specified by the rogue state, and will instead connect somewhere else. Basically like two realities of links pointing different places in each universe. A multiverse of name resolution. Not great at all, except what if the rogue state is larger and thus more power-dominant than the U.S.? The U.S. can pretend they don't care, but they become ostracised through DNS, and that's not going to win favours with the users. In other words if 4 out of 5 people prefer x.y.z. points to my actually useful website except some scammy ad-ridden page, then whoever doesn't point x.y.z. to my website is going to lose users -- unless those behind the scammy x.y.z. alternative pledge to monetarily compensate for every disgruntled user.

Anyway, name resolution needs to be federated because ICANN is apparently compromised as far as doing the right thing goes. A single root model may not work anymore. Maybe blockchain can finally do some good...