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 Yes, if you ship your app in a virtual machine you have to live by their rules :)

I could have hardcoded the relay IP instead of domain, but then it wouldn't have worked within https apps.

If you dislike this dependency on ICANN, build native apps, and or help us convince browsers to support pkarr TLDs (will take years). 
 Sure, just trying to understand the limits in different  environments. 

Thanks for your help!  
 You realize you can just you can just ask ICANN to adopt this, or something close.  Some bits will have to be cleaned up, though, first.  I happen to meet them because they do their plenary in my home town every 2 years.  They've been wanting to redesign DNS for ages.  And in fact last time I met them they were talking about namecoin and how there was a way to spread it.  And they were asking if they should put .arpa on the end of all their domains but not show that in the browser, which would let everyone have their own resolution.  I said that was a bad idea!  ICANN people are actually pretty cypherpunk if you get to know them, they consider DNS to be an old system and they would update it if there was a good solution.