This is a good chance to stop our dependence on DNS and move to things such as .onion domains instead (which by the way help avoid the whole certificate CA mess).
.onion isn't a direct competitor for DNS. It does some of the things DNS does (e.g. a consistent identifier that sticks even if your IP address changes), and even does some things DNS doesn't (e.g. encrypted transport), but the names aren't human-readable. And it compromises the security if you try to pretend that they are by generating pretty keys, because the random junk on the end there is important.
Namecoin, on the other hand, is a direct competitor for DNS.
However, DNS itself is pretty well federated. You're at the mercy of the TLD operator, but that only means you need to be careful to choose a trustworthy one. On the other hand, if you had asked last year which of the TLD operators would be the least likely to screw you over, a lot of people would have said .org, so... maybe there is something to this whole cryptographic trust thing.