This solution can't solve the human readable part. It chooses security and decentralization over human-readable.
I believe the human readable names to be a social problem to solve. They could perfectly well resolve to an npub's no-dns records. Meaning bob.nostr might resolve to one npub for me and a different one for you based on our differing social graph.
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hm that doesn't work , the name must be worldwide unique like a npub