Maybe, but today's DV PKI is already trusting DNS 100%, since certificates are issued based on using DNS responses to validate the certificate request. If you don't trust the governing body of a specific ccTLD, for example, you are already worse off today - a hostile ccTLD DNS operator could very well arrange to fake DNS responses for the duration of a certificate request?

Maybe it's not so bad to make it more obvious what a fancy .ly or .lol TLD really stands for?