"fundamentally the system’s only really good use case is for cryptocurrency"
If those domains cannot be censored, you can bet that the scum of the Earth are going to be all over it. Get ready for kiddie porn, crime and drugs, and all the worst of human imagination to take refuge there.
The US/UK governments want backdoors in encryption ? My God they're really going to get chuffed about this stuff.
As soon as someone explains it to them, of course. With Playskool blocks.