I agree with everything you said, I just want to explain that I don't mean that the alternative is using a third party server. There are multiple other namespace solutions but Bitcoiners don't have a sufficiently Bitcoin-friendly one yet (maybe Web5's ION?). Brave browser for example will accept .bitcoin TLD but it will resolve it through Polygon. Then there's also this: https://btc.us/ but again with a shitcoin.

DNS is just a distributed database. So is Bitcoin. Therefore Bitcoin doesn't need DNS in principle. We need a pure Bitcoin-based name service - perhaps through Ordinals - and then we can leave DNS to bsky people and other boomers.