This is really interesting. One using a URL shortener is essentially setting up a parallel DNS infrastructure (like the article said). And there is nothing preventing anyone from doing exactly this right now. One could run a DNS that re-maps any name to any desired IP. The new root "just" have to get people to put down your servers instead of the ones that their ISP or organization gives out.

As with anything where there are multiple equally good ways to do something, there will be people that do it each way: http://en.wikipedia.org/wiki/Alternative_DNS_root