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No, I think it can work in another way: at the end the descentralized system is connecting to a protocol outside the blockchain, this is the weakest link. You can contact the legal entity using ETH and sue them in the country they operate. Switzerland? https://en.m.wikipedia.org/wiki/ETH_Domain

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So the scenario becomes: a) use DNS b) use "central"-ENS, but if the domain is already registered now I have to sue some .ch organisation to unregister it. c) use regular ENS and live with whatever namespace entries are free

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.

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