That only works if the users trust their government(s), where geopolitics are stable, and where freedom from censorship is a cultural norm. All of those things are increasingly rare, and centralized domain names are an easy way for states or competing governments to block access to undesirable materials.
The allure of a supranational DHT network is that it is more censorship-resistant, requiring deep packet inspection or attacks to block certain lookups.
I think this hypothetical consensus-based DNS blockchain sounds nice at first glance, but really, it just means that DNS is changed from an authority-based model to a consensus-based one. But consensus of what? It's not of people, but of resources -- compute power -- which states will always have more of, anyway. Like TOR, it just means the state has to control/surveil more "trusted" nodes. So it doesn't really solve anything.
You can't "web of trust" a global network of 8 billion people who don't have any interest in this stuff, don't want to peg their individual identities to some online system, and don't agree on what truth is to begin with. You can't techno-topia your way out of the cultural differences inherent in geopolitical disagreements.