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Thanks. Both good points.
I don't know yet if there is demand, or how much demand there is for vanity pubkeys. It's more of an experiment at the moment. I suppose only hardcore users of Nostr are (or may potentially be) interested in this.
About identities, true, relying on a prefix to identify someone can be tricky. But this is not trying to solve identity. Different clients have different ways around it (like checkmark, NIP-05 domain identifiers, etc).