NIP_05 is great especially for corporates... Who are already compliant and very unlikely to lose their domains.
But still, sovereign domains are better. But it is not just sovereignty but also ease of provisioning ... It is easier to create sovereign domains than ask users to buy domains.
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NIP-05 is useful *just* for corporations that already have an already established and known DNS domain, as they can use it to "announce" their official npub.
But NIP-05 has no use for individuals without an already existing and well known DNS name.
Some nostr clients presenting every profile with NIP-05 as some kind of "verified profile" are just messing around and misunderstanding NIP-05 utility.
Impersonators could very easily define any NIP-05 in order to show as verified and try to deceive people.