If we imagine the internet is going to keep expanding at anywhere near its historical rate it seems like we might have to let go of the idea of letting a single entity universally control a namespace.
Inconvenient, but that's a price I'm willing to pay for a network that empowers users rather than commercial interests.
All is not lost though. You can always opt out and run your own DNS or use hostfiles. Then you can have the internet you want and everyone the can have the internet they want.
I'm sure other countries would like to use .gov.
My point is I don't like a system in which the majority can decide they don't like you having something and take it. For instance, what if people decided they didn't like facebook, so decided to seize its domain?
Are there any examples of longstanding institutions that are _not_ beholden to the will of the many? All things fall if you can get enough people to revolt.
Fragmenting and an inability to formulate a standard answer when communicating are serious issues with using it, but a takeover is not.
If Chinese users would rather trust some Chinese government entity to resolve URLs, then that's what they'd get. At the same time as other users might get something else.