A physical address to receive recovery codes? In Denmark, every person has a digital identity and they can authenticate themselves using either a smartphone or a dedicated TOTP key fob, and that could also work. Heck, we even have digital mail boxes for every person.
The reason that email is popular as an online identity is that it is an easy and cheap method for the service provider and user to establish an identity. It would be acceptable for a domain name provider to use a more expensive way of establishing identity since you only have to go through this process for this single provider. A physical office could work if you don't live in a country where people have government-issued digital identities.
Edit: Actually, why would we need all that? We don't need anything but a username, password and maybe a phone number to sign up for GMail, so why should it be different for a domain name provider? Sure, you need some recovery mechanism if you lose your credentials, but that problem is already solved by current email providers by using phone numbers, recovery codes, TOTP, Yubikeys, etc.