The core issue is that DNS is a money factory that exists because of their first mover advantage and incumbency factor. There is no other reason why someone else couldn't have been in charge. It's like those academic publishers in the age of the internet (though they had legitimate reasons to exist before the internet). Their justification for existence is that they already exist. Such systems are ripe for exploitation and corruption. And there is no reason someone won't do it when they get a chance.
A naming system is necessary and a centralized naming system is certainly costly to maintain. But, we could have sacrificed the centralized control in favor of low cost of operation and virtually free identities. (The sacrifice is due to Zooko's triangle). The identities won't be that easy to remember - but we already have a similar system where that issue is solved. We have nearly random phone numbers that we map to pet names in our contacts list. It would have avoided another avenue of unnecessary economic exploitation on the internet.
And I mean sure, godaddy sucks. I get it. I don't use them. But a customer of mine has all his domains there, and it just works. That doesn't make them better in my eyes. I work with people who helped build godaddy- and yes, we giggle and rudely point at them for what they've become. But a scam? That's a stretch to me. and what the OP posted about was not a scam.