In practice, it rarely works. Only big corporations have money to actually sue and win these cases. They usually prefer to pay however.
Same with regards to other reasons people give for lack of adoption of crypto alternative.
For example, lack of reversal and dispute handling is cited as the major reason why crypto currency isn't used for payments. That's just not true.
UPI in India does not have ability to reverse transactions either. So does not countless p2p payment systems. UPI alone processes billions of transactions weekly.
I think all these high level concerns aren't the reason for lack of adoption. They might indicate lack of corporate adoption but at the core level, I would think lack of a widely used consumer DNS like 8.8.8.8 and 1.1.1.1 is a bigger hurdle. Both of them won't resolve ENS and any other crypto based alternative.
Your average person is never going to run their own local DNS resolution node and switch it in their browsers.
In iOT and smart devices like TV, DNS is often hard coded so impossible to change.