> The real world problems are still being solved, just off-chain.
This is incorrect and the example shows why:
> I made a similar example with Mastodon: no central entity controls Mastodon, so x@x.com and x@x.xyz might be owned by different people, one impersonating another, and you can't just "complain to Mastodon" to fix it.
In this case, it might not be a problem — many people share the same names and a decentralized system supports that in a way which a centralized system like ENS does not. If it is a problem, you can complain to the operator of that particular instance and if it's an actual crime their domain registrar or hosting company, etc. If you lose your credentials or someone steals them, you can use the same mechanism to correct it.
In the case of ENS, you not only do not have any of those mechanisms but the system is designed to prevent them. If you lose control of your keys, you lose your name for ever. If someone squats on your name, there's no third-party to turn to short of filing a lawsuit and hoping that the person complies with the eventual outcome.
Re: Tornado cash, that's kind of the point – the smart contract is risky for people in multiple large economies to touch, and IPFS is no more resistant to take-down notices than any other distributed hosting option since it's built on top of the normal internet and governments have plenty of experience contacting network owners. Having the name up gives you something more reputable looking than using a DNS TLD under a different legal authority but it's not meaningfully making the system more available.