I like the u...@server.com model. The protocol should be done entirely
in DNS, though, not using HTTP connections to the server. Then the
protocol can easily be used with Namecoin or other DNS
replacements/enhancements later. Crypto to prevent MITM attacks can be
an optional part of the protocol.

Almost all users will be unable to set up *any* always-on Internet
service to answer queries, so I'm not too concerned about how easy it is
to set up the server software.

I agree that FirstBits is bad for this. Unlike DNS, "registrations" last
forever because private keys can't be transferred safely. All short
names will be taken quickly. It will also be very expensive for clients
to query this themselves.

The CA model is broken and it should never be used by Bitcoin.

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