ENS is purely a vanity service, like any other NFT.

ENS would not have this problem, however, you might as well write a name on a piece of paper and never show anyone. It is not the same thing.

ENS will never be resolvable via the global DNS namespace. Its like a parallel DNS namespace. I don't believe that any blockchain NS will ever marry with the global name resolution namespace. Handshake and Namecoin are alternatives too, and there was non-blockchain thing called NewNet that no longer exists.

Globally resolvable names need to have registration details, so when you register "cocacola", Coke can sue you for trademark infringement. They need to be revocable.