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The problem I've always had with this is that DNS root levels (., no www) can't be a CNAME - unless there are any DNS gurus in the audience that can point to some alternate configuration I've overlooked.

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No, you're right - it's a serious limitation. Ultimately just a trade-off to consider. As with anything, neither is obviously superior.

You can always just serve a redirect to www.example.com. Doesn't have to be a high-powered redundant server or anything (just secure).

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