Local names (bookmarks) and autocomplete definitely work for some cases, but they alone without global short names objectively provide worse user experience than what everyone is used to. Couple that with a much larger attack surface for fishing scams and it creates a not very secure paradigm for an average user, onion services proved this point over the years.
Also consider that such Bitcoin based system can work in parallel with cheaper randomised domains of Pubky. It doesn’t have to scale enormously, it will create a free market where people who want a short name will have to pay the costs of doing so. As far as I am concerned Nomen would not burden Bitcoin network significantly, so the cost of having a decentralised short name would be the same as the cost of sending a normal on-chain Bitcoin transaction, which seems more than reasonable.
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I want to give every adult a sovereign domain, that can't be done on Bitcoin. I don't know what more to say.
The only thing we can do is invest in UX solutions to all the problems you mentioned. There will never be a future where everyone who wants a domain on Bitcoin can have one, so even if it is superior to ICANN (which it is not because at leas ICANN names works everywhere) it is a dead end.
You are free to use it. And good luck convincing people to buy a name that they can't use anywhere, and then they can't use your app before they buy that useless name. Namecoin existed forever man, no one cares, let's try something with less barriers to entry.