Fair enough, my knowledge of DNSSEC is limited. I thought it provided confidentiality in addition to authentication, but I see I was mistaken.
I'm still not sure how you arrive at the conclusion that it is a net loss. Which attacks will DNSSEC enable that are not possible today? If you mean that it will give people a false sense of security, is that not the same as TLS today? Despite my hangups with the CA system I think we're better off with TLS than without it.
The NSA certainly has no problems with intercepting DNS requests today with their QUANTUM tools.
I am genuinely interested in hearing other ideas about how to provide confidentiality and authentication for DNS without central trust. Since you have clearly investigated these matters, I would like to ask again, are you aware of any promising projects or ideas in this regard? Because I would jump into the anti-DNSSEC camp in a heartbeat if one existed.