Thanks for answering! What I don't understand is that, given that your starting point is "two computers talking over a malicious network", doesn't the current state of affairs of (unencrypted)DNS mean that it's game over from the outset? That is, if the network is malicious, that MITM could very refer you to an invalid IP address the moment you first try to resolve, say, mail.google.com.
Please don't take this as an argument. I just want to know where I'm wrong! I just can't get over the idea of pushing at the (justifiably) paranoid level for HTTPS while we still have plain-text DNS... even with DNSSEC!
Wish request: Your thoughts on http://news.ycombinator.com/item?id=4268461.