Yes, but there are legitimate reasons why a NIP-05 service provider might not want to do that:

- Doesn’t scale. Imagine if there were a million users

- Privacy reasons. An organization may not want to reveal the entire directory to protect its users.

Popular providers already don’t return the raw nostr.json.

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I feel that. you could shard today by subdomain I guess.

but it makes sense to have a more structured access to this data, I agree. pagination and query would make sense and align with the REQ specs.