Earlier quoted context omitted.
Zerotier does kind of that. It's a tunnel, but also the traffic is direct (unless double Nat is involved) and if you could route the traffic directly to the endpoint IPs, you can skip zt. The location service can be self-hosted if you want. You don't have to use them as a service if you don't want to. Apart from dnssec it's pretty much what you're asking for.
Double NAT is now almost everywhere in the world, except maybe USA.
just the other day i was discouraging a youngster from manually populating his hosts-file in order to circumvent a dmca-related dns block.... what has the world come to.