This should be something added to an AWS Security Hub check, e.g. do you have Route53 pointed to an unregistered domain. Otherwise, I can't find fault with AWS at all. Now I have to review our domains on Monday.
It's one of many products that supports serving under custom hostnames and all such products should have domain verification.
Because of this, I agree, they should verify domain ownership to help protect their users.
You can verify your domain is going to a cloudfront you own, but it doesn't verify that the origin is a bucket you own.