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[Quinn Wood <wood.quinn.s AT gmail.com>]

Namecoin didn't work not because of an ownership vs. rental model, but because of the introduction of a root with zero taken domains which attracted few people which intended to actually use the domain and many who intended to domain squat. Even OpenNIC's standard TLDs have that problem, a ownership based system with low prices means these squatters never leave.

If a rootless domain system has the ability for the other members of the network to consensually decide someone's DNS record is squatting/spam/otherwise unacceptable, it has a higher chance of succeeding. This would indeed be worth doing.