Considering cryptocurrencies supposedly 'square' zooko's triangle, a fraud namespace like this eth registration can not survive the real world.
No court in the world can force a deleted key to be transferred to CocaCola. Likewise any cryptocurrency cannot be forceably stolen by the threat of state violence -- the math does not permit it.
So either, cocacola has to have cocacola1.eth (lol), or they have to institute a court ordered hard fork to recover the keys.
Both seem undesirable!
a) offers everything b offers, but its likely cheaper and has a real-world dispute resolution process.
Take a look at the grandfather of decentralized DNS namespace; .bit from namecoin. After 6 years it has not found its place in the internet name ecosystem.
You're underestimating violence. They just need the key: https://imgs.xkcd.com/comics/security.png
Of course that's going to be harder if you don't know who holds the key, but judging from all the raided darknet markets it's definitely not impossible to figure that out.
Of course the state can torture a person until they hand over the key -- if it exists.
And if they can pull that one out, ETC will overtake ETH.