i don't think it shows that domain names don't matter. it just shows that DDG is good enough to overcome their terrible name. who knows where they'd be with a better name.
Google had the same problem. I recall showing Google off to people (when it wasn't a household name) and they'd comment on what a stupid name it was and how they wouldn't remember it.
Similar "stupid!" name outrages occurred over Vista, Xbox, Wii, iPad.. but they got absorbed into pop culture anyway and no longer seem weird. C'est la vie :-)
