Honest question: what is the ultimate end game if at some point a court in another country orders a domain be reinstated? Do we end up with a domain registration system per country?
We literally already have one of those. Each country has a .XX TLD, and all other TLDs are for the USA.
The winner of that battle will be wherever the DNS is hosted. Which is the USA. Even several ccTLDs are hosted in the USA and must obey USA law above the law of that country.
I think given the history and "ownership" of the specific TLD of .com by verisign and verisign's relationship with the US federal government, it then proceeds to ignore any court orders to reinstate the ownership issued by a court in any other country that is not the USA.