Yeah I think NIP-05 works for now, but for mass adoption it will confuse newbies. And obviously the same goes for the DNS approach.

Like you say it's useful for businesses, or really any individual who has a well known presence under a certain domain, but for most people they just want some kind of username.

I'm not sure what better implementation exists that could actually be implemented in the near term through.

I personally like the .btc domains and they have their own TXT records so shouldn't be hard to implement, but they don't solve the core issues of domain based authentication, just move them to a different platform, and arguably make things even more difficult for the new joiners.

No easy answers here but I suspect what'll end up happening is basically this...