What inherently requires an identity to register a domain name?
Tech can't possibly cater to everyone's special needs.
I'm totally fine with domain names being the interface between thr protocol and the human user. All other mappings (e.g. legal names) fall in the realm of human politics.
Well, you can try to break the system by splitting it in half, introducing an overlapping domain. If collisions is the desired way of dealing with it, the whole thing is ultimately broken.
Just imagine Amazon breaking Google domains because they have a better cloud.
With ICANN and registrars, there is a point you can directly attack legally, and a root of trust.
For my use case, that's a problem rather than an advantage, as I'm not a holder of important IP works, trademarks, etc.