It would be funny, if not poetic justice, if Brazil decided to do just that following this decision. Likely Amazon would sue them and an arbitration court would side with Amazon though.
Amazon would have to be pretty dumb (and petty) to do that after this kerfuffle.
It's fine to be an entrepreneur and own a small business that takes part in the local community, but that has nothing to do with the business you're in. Selling regular household merchandise is not a good business anymore.
If they were always going to be just a piece of the market, they would have had to show profits for that, what, 15 years that they didn't have to? This put brick and mortar stores at an extreme disadvantage.
Amazon just executed better. Competition is good for consumers who have clearly stated they prefer the prices and availability of online shopping. Small neighborhood stores no longer served the market.
So saying there's nothing intrinsically good about "mom-n-pop" stores compared to what Amazon is is a very dubious thing to say. To re-iterate, sure, consumers chose Amazon for a reason, but things are not black-and-white and deciding if something is good or bad is far more nuanced than just that.
I'm not sure where this rustic idea of "mom-n-pop" general stores comes from because there are still millions of thriving small businesses well integrated in their local communities. The key is that they don't sell the same basic goods that Amazon sells.
So, no it's not the exclusive property of Brazil.
For most people though I don't think it makes a difference, as I don't think DNS hierarchy is well understood by most internet users.
In my mind: .(root server) > (global feature/country/company) > (feature/host) e.g.
. > .br > amazon
makes more sense than
. > amazon > ccTLD.
I think a better example for your point would be `.ocean` as the logical way to divided it would be pacific.ocean, atlantic.ocean, etc. however no one entity "owns" the whole or said parts of the ocean and dolphins do not want to administer DNS servers. That said, naming things is hard.
I don't think that was the claim, it was just an example