DNS is not a "vanity project", it's a massive issue in terms of internet governance. We've known this since the '90s, which is why the EU is starting its own service (that is not this one). I doubt this project got any EU funding, or is likely to ever get any EU money at all; in fact, it looks like a last-gasp attempt from a private DNS company to remain relevant.
DNS4EU is yet another EU vanity / pork barrel project. DNS resolvers are commercial failures as you point out and DNS4EU is going to do nothing to change that.
