DIDs allow you to remove the key from the host which invalidates all your past signed documents because no one can verify them anymore.

So, it's not really a key rotation, but a key expiration. You lose all your data regardless. It's similar to moveing to a new key in Nostr.

Hm really. Are you sure you're talking about the did:plc variant not did:web variant?? A quick read of this https://github.com/did-method-plc/did-method-plc?tab=readme-ov-file doesn't reveal how it's tied to a host.