Exactly, and in some ways, DNS is even more centralized. At least there’s a choice of CAs independent of TLDs.
It would be great to have a widely-recognizable pseudodomain out there where the names were key hashes. It would actually graft really easily into DNSSEC. The zone format doesn't have to change at all; you just declare that if the KSK hash matches the domain label under this specific TLD, you don't need to check upstream of that. Then you add a P2P protocol for getting the actual data, and start slowly pushing that protocol down the resolver tree to incrementally decentralize everything.