There is already ENS.
I suspect the lack adoption might rather be because of:
- DNS being "good enough". Rug pulls as described in this article are sadly possible, but not frequent enough to motivate enough actors to work on the switch
- The stigma attached to crypto. Which is understandable given the number of bad actors trying to make easy bucks with false promises. But it's also a shame, given that this actually seems a perfect use case: the code is simple enough, and as far as I know, only a blockchain can guarantee a specific code will be executed without relying on a third party being and staying honest (in others words, true self-custody of a domain name).