Of course, all of this complexity is hidden behind a pretty interface, so users don't have to worry :)
As for the dig command, perhaps your resolver (DSL router?) is buggy? Try Google's:
$ dig @8.8.8.8 andy.tel naptr (or 'txt' for my text records, and 'loc' for my location).
Hit me up on http://messaging.andy.tel if you want to chat about anything in more detail.
"In contrast to other top-level domains .tel information is stored directly within the Domain Name System (DNS), within the actual domain name record, as opposed to the DNS simply returning details (such as IP addresses) of the machines on which information can be found."
Do you know of a list of services that actually make use of these domains?
I've written some stuff that I'll try and release soon.