I feel the same way about using nfts to sell jpegs on the internet
ENS will inevitably butt up against the cryptocurrency problem of having few legitimate use cases and even fewer legitimate users. Outside the e/acc Twitter circles and lolcow online harassment forums, the demand for such an "uncensorable internet" is almost nonexistent.
I think your claim about low demand could be taken more seriously even as recently as ten years ago but when you include "social media handle" in with "domain" then getting your online identity revoked is an every day occurrence and has been for years for a huge number of people who were not extremists or trolls. Later to be revealed by internal documents to be guided by the hand of the US government under false pretenses.
So it's not just extremists and trolls but also, every day people with opinions the government doesn't like who are getting their accounts and content taken away.