A few issues
All that I see here are issues with no solutions. Well, maybe one...
1. Fracturing the DNS root system is not a good idea because that is how someone from the US like me, can read and comment on these forums. It will be like the .onion TLD which was never approved but is in use on the dark web and requires a special browser to access.
2. This issue started when ICANN was under the purview of the US-DOC. But now that they are on their own, they have gone completely out of control. If they will not follow their own bylaws, then it makes me wonder if they will follow a court order issued by a judge in a court of law. I know they probably won't if the court is in a foreign jurisdiction, but even in the US...
3. Currently, ICANN's regulations that the registrars must follow are in direct conflict with the laws of some countries. Case in point is Germany, which puts the registrars between a rock and a hard place. Either follow your country's laws and risk your status as a registrar or follow ICANN's regulations and risk getting sanctioned by your country's legal system.
4. The fact that this as been going on for six years already makes me ask the question Why? According to the article, they are disobeying their own bylaws, which a judge in the US should be able to make them follow with a court order. This just demonstrates the abuse of power they are committing since they are no longer under the purview of the US Government.
In the past, I was against making internet governance part of the UN-ITU. However, seeing how ICANN has been abusing their authority lately, that may not be such a bad idea considering that every man, woman, and child is a stakeholder in the global internet which crosses international borders.