> as domain names are legally treated as property and cannot be confiscated except through due process (like a court seizure following a ruling on illegal activities).

That's just current convention, though. If better governance means being less private-property absolutism, I'm for it. ICANN or whoever could just update the terms of their contract to allow revocation of the TLD (with a refund), if there's too much weeping and gnashing of teeth over it's issuance. People would just need to understand domains on a new TLD aren't going to be as ironclad as ones on more established TLDs.