True, but instead of having to trust a central authority for insertion, updating, removal and constant maintenance of your "ownership", the trust would only be required for insertion. Once you purchased a domain and it's inserted in the blockchain, no one (outside of yourself) should be able to revoke, change or question your ownership of the domain itself.
Honestly it would be a pretty good use case for a blockchain, but it lacks a money incentive for any part involved so it will probably never happen