I don't really understand the landgrab complaint: this costs $0.08 per username registered ($0.16 if you want to avoid races with miners), in comparison to centralized sites, which usually cost $0 per username registered. Why does this lose?
Centralization is about equivalent to ICANN being able to kick off a squatter. A truly decentralized system with first to register doesn't have a way to kick off squatters.
Well, the current ones don't, but it could. Decentralized networks just need decentralized decision, ie., you could have a process by which the majority of the nodes decide to kick off a squatter.