It's also likely that Google will continue to improve this service over time, so who knows what the future will hold. In the case of Amazon's Route 53, they have some really neat features for pointing alias records at S3 buckets and Load Balancers.
Google.
For instance, they could use you hosting your DNS with google as a signal, and it also gives them nice demographics information for sites that do not use GA.
Kind of surprised they don't make it free, compared to the value that would provide given the context of their other offerings they could nail all the competitors in this space while getting plenty of value out for themselves.
However, for DNS service to be of similar use does it mean application servers are going to be spread across geographically? For end customers it doesn't matter as they will always use the DNS configured for them by their ISP in most of the cases unless one is tech savvy and tries to use some other DNS such as Google etc.,?
Please help understand what am I missing here?
Your computer asks your ISP's DNS server for the record. If your ISP has it cached you're golden, but it turns out it probably isn't. So your ISP needs to go to ask the hampsterdance.com DNS server directly. If that server is in the United States then you're stuck waiting 133ms in one direction, 133ms back- you've now added a quarter of a second to that page loaded.
Using a DNS CDN means that 266ms ends up being 15ms (keep in mind that these guys also peer with local ISPs to make things even faster).
On the other hand, if your site makes you money and you've got competition then every edge you can get is worth while.
1) Round-trip times from Australia to the USA are truly as bad as 266ms
2) You're confusing ping's RTTs with one-way trips
3) You're assuming DNS has a syn/ack, which it doesn't.
EDIT: I suspect you realize there's no syn/ack in DNS based on your other comments... :)