And more importantly than letting you register, it avoids a .com, .net domain getting one of these on a landing page https://www.justice.gov/sites/default/files/styles/width_12/...
This has been the story for many sites, where domains are seized even if owned by a non-US person/company, with an order to the TLD that operates in the US. With a distributed DNS system like Handshake, 'in theory' this shouldn't be possible, since it would require multiple nodes to alter a domain's DNS records vs. a central TLD authority which has to abide by US law.
It's all interesting, but it still seems we are ways off from the DNS backbone (& my browser) operating with this kind of DNS architecture. It even appears it's becoming easier to take down a domain, not at the TLD/registrar level, but more so at the hosting level (e.g. Parler)