If I could change one thing about root replacement, it would be for a more efficient use of the hierarchical structure of the DNS. The attempt to cram everything into a namespace that is mostly flat is, in my opinion, essentially intractable.
Handshake does use hierarchy like DNS (you can have any levels of subdomains behind the TLD), except it grants you access to the TLD level at affordable price, that is their main selling point. Whereas today you can only be under a TLD like .com or .us for an affordable price.