1. Should most people have access to a domain they control?
2. Should there be a standard for nonroutable / nonpublic domains? (.lan and .localdomain are two of which I'm generally aware)
3. How should browsers deal with hosts and/or domains which are not and can not be on the public Internet?
4. How the hell did we get into this mess?
I'm kicking around the notion of relaxing various aspects of the problem domain and seeing where we end up. It's mind-numbingly bad, though.
Note that domains don't solve the problem of a third-party controlling your point-of-access or presence, they only move it elsewhere.
I'd say that in the world we live in, getting a domain is as useful as getting a passport. It costs a bit of money to get and renew and is a bit of a hassle, but it opens a lot of doors.
I think that's the point. Creating friction that scares normie users when people are using web UIs on local networks puts non-cloud based products at a disadvantage against the centralized giants.