So far in this discussion there's already a lot of housekeeping data required. It will be much easier if you can freely use all the space you need without worrying about paying fees for expensive space in Bitcoin's chain. Some transactions:
Changing the IP record.
Name change. A domain object could entitle you to one domain, and you could change it at will to any name that isn't taken. This would encourage users to free up names they don't want anymore. Generated domains start out blank and the miner sells it to someone who changes it to what they want.
Renewal. Could be free, or maybe require consuming another domain object to renew. In that case, domain objects (domaincoins?) could represent the right to own a domain for a year. The spent fee goes to the miners in the next block fee.
Bitcoin and BitDNS can be used separately. Users shouldn't have to download all of both to use one or the other. BitDNS users may not want to download everything the next several unrelated networks decide to pile in either.
The networks need to have separate fates. BitDNS users might be completely liberal about adding any large data features since relatively few domain registrars are needed, while Bitcoin users might get increasingly tyrannical about limiting the size of the chain so it's easy for lots of users and small devices.
Fears about securely buying domains with Bitcoins are a red herring. It's easy to trade Bitcoins for other non-repudiable commodities.
If you're still worried about it, it's cryptographically possible to make a risk free trade. The two parties would set up transactions on both sides such that when they both sign the transactions, the second signer's signature triggers the release of both. The second signer can't release one without releasing the other.
Again, it seems that even @theymos may probably know his true identity (real names and address) according to a forum comment he made in 2010. Where he explained that certain set of first, second, and forth posts were permanently deleted because they probably contains Satoshi's real names and address.
I don't agree with you at all, but i love those quotes you brought. BitDNS was a nice idea that wasn't completed, will Theymos ever do something about it?
Those messages you refer to have been published elsewhere by Theymos, but they are quite boring test messages of someone setting up a new forum board...
The name might be fake but the origin remains unclear. How about a Japanese living abroad? I don't remember if those were the years of WinNY developers being arrested, but in Japan it is a good idea to anonymize yourself for certain things, even if they later turn out good and widely accepted...
No matter, Bitcoin still lives, and most surprisingly, the forum as well.