You call the current policy ambiguous, but the proposal wouldn't even ensure that all browsers block or allow the same sets of domains.
Anyway, I am aware that people use multiple domains on the most diverse ways. But it's important to have the technical behavior simple and predictable, and if Google doesn't like the consequences of the way they decided to organize their domains, well, it's their problem for them to fix, not a reason to push complicated unreliable standards on everybody.
I probably have a naive understanding of this, but why not? In your Shopify example, users should certainly be taught that Shopify does have ownership of mystore.shopify.com (in at least the 'security' and 'privacy' areas of concern from the write-up). Likewise, entities proxying resources controlled by others through their own domains (e.g. CNAME cloaking) should take responsibility for what they are serving and how they are exposing their clients.
You have also the parallel problem of how do you transfer the trust you have on google.co.uk to youtube.co.jp only based on the domain info you have.
This all to say that using only domain names to resolve ownership is a hard problem, since ages browsers use a crowdsourced list [1] to get around this issue but recently it proved not to scale very well, specially after Apple's move to use this list as part of their "Limit Ad Tracking" solution.
But it also allows things like specifying that laptops.shopify.com, laptops.com, laptops.social.com, desktops.com and calculators.com are the same party and therefore tracking may happen across them. There's no obvious good way to put the user on notice of this, and the Explainer totally punts on addressing this problem, instead leaving it to each browser to figure out.
Really? Um, MS led the way with IE6 and all of the baggage they brought. Google took the mantle with Chrome. Ultimately, it is the browser vendors and their "interpretations" on how to handle things. Rather than working with the governing bodies (yes, they are slow), they forged ahead with their own implementations and forced everyone to follow. No browser is perfect, but the travesty that IE left us with should have been the glaring example of what not to do, but yet Google went and did it again.
The internet is nothing without the browsers. If the browsers didn't do bad things, we'd be in a lot better situation.
The difference between nice and awful, of course, is when developers and vendors treat such features as a given without providing graceful degradation (or progressive enhancement, if you prefer) for users of other browsers.
I.e. before we had indexeddb, there was websql. The whole PWA slew of features (I.e. service workers) can and are used without breaking user experience.
There can be bad implementations too- youtube's awful performance due to their early version of the web component spec comes to mind- but these features arent really akin to the olden days of ActivX / IE dominance, since they are single purpose and not opening up an entire foreign interface.
The real question, I suppose, is whether the people who interact with the W3C/WHATWG/etc. have decision-making power within the organizations they nominally represent. If not, then these bodies are kind of like the UN: nominally a place for treaties to be made, but in practice a place for ambassadors to glad-hand one-another while their leaders ignore the decisions they make.
More DNS requests, more TCP connections. At first this is purely slower.
For instance, if you had a 128kbps DSL upstream and each request was 2KB (loaded up with cookies), you're already limited to 8 requests/second. A cookie-less domain for small resources helped this a lot.
The DNS is cached.
Why is this even a thing? There's nothing wrong with storeA.shopify.com, storeB.shopify.com... The only valid use case is if you're somehow trying to hide the shared ownership/platform, in which case it's up to you to deal with the downsides.
[1] https://github.blog/2013-04-05-new-github-pages-domain-githu...
I think there's a big abstraction gap between what we use domains for and what they were supposed to be used for, in a way that we shouldn't assume any ownership only based on the domain itself.
For instance you can have a number of sites that use separate domains but are owned by the same entity (N domains for 1 party). You could also have the same base domain being used for several unrelated parties, think hosting a store on Shopify (1 domain for N parties). This is so ambiguous that even inside the browser you have two different implementations on the way you handle this attribution, one for cookies and one for Single-Origin Policy.
There's a good write up about this problem at https://github.com/sleevi/psl-problems. Sometimes I wonder how the web got here with the amount of kludge that we have to carry.