This shows no understanding of how the Internet operates.
There is no technical reason why organisations like ICANN and IETF have the say that they do - at the end of the day it is nothing but consensus that empowers them. We choose to listen to what the IETF says about protocols, and choose to use the DNS root servers blessed by ICANN. If those organisations become corrupted, we can choose to use others.
In the post-Singularity world depicted in the novel Singularity Sky [1] the IETF has taken over the UN because the concept of nation or money or army is now meaningless.
It would be a nice thought experiment to think for a second of a UN organisation that is consensus-based, not vote based and whose resolutions are not binding in case the market expects a different outcome. Oh, wait, it is exactly how it is run now.
Until it becomes illegal (in some countries) to use IETF/IANA/ICANN stuff instead of the "official" ITU alternatives. Just to give one example, a national firewall could block all the ICANN/IANA DNS root servers so that you have to use new ITU root servers.
Good luck with that. DNS lookups are only a few bytes long and thus are probably the easiest protocol in common use to smuggle. So technically it won't work.
However, a country could abuse its own population in order to force it to work most of the time. There's probably not a technical solution to that problem, people need to use the freedoms they have to oppose techno-authoritarianism before it can take over.
I don't think it has any chance of being widely adopted in its current incarnation because of two major flaws:
1. The early adopter advantage is too high (the designers took steps to limit this, but not enough.)
2. Renewal is free (encourages squatting.)
And there are other missed opportunities. A built-in auction system would be nice, as would a mechanism for registering a "tld" and inviting public registration of subdomains.
Still, I reckon they got the basic idea right - decentralised registry of domains, using well-tested (thanks to bitcoin) cryptographic algorithms.
There is no technical reason why organisations like ICANN and IETF have the say that they do - at the end of the day it is nothing but consensus that empowers them. We choose to listen to what the IETF says about protocols, and choose to use the DNS root servers blessed by ICANN. If those organisations become corrupted, we can choose to use others.