That would prevent people from using free assigned subdomains (e.g. github pages) where the user cannot set DNS records.

Ability to setup a webserver is more ubiquitous than setting DNS records.

I agree that NIP05 should be extended to allow both forms.

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Is it? Huh. That's annoying.

Why not use the already existing https://webfinger.net/ then? That way it's possible for fedi instances to support it.

Would definitely love OpenAlias as another supported method, have used it for ages and it’s very under-appreciated.