Yes, every tor node contains a resolver. No, this doesn't mean that every node knows the .onion address of every hidden service; there is a distributed hash table involved. (Note: only hidden services have .onion addresses, not regular Tor nodes.) It is not at all like using /etc/hosts files.
The US does not control all of the DNS root servers. China does control its BGP, and puts more effort than any other country into running a centralized firewall, and even hijacking DNS queries coming from inside the country sometimes. The US doesn't arbitrarily revoke TLDs because it would be akin to an act of war, and universally condemned.