The issue with DNS-01 (and HTTP-01 to a lesser extent) as someone else mentioned is that the user friction is really high.
I’ve been working on a solution to this that I’ve been meaning to post to HN and this seems like as good an opportunity as any so here it is: [1]
It’s a method of storing a hashed (and optionally salted) verifiable identifier (think email or mobile) at a subdomain to prove authority for a domain.
And the primary way of identifying yourself is in fact DNS.
> I’ve been working on a solution to this
Your solution is almost identical to the BlueSky one: put a TXT record at _atproto.<domain> that resolves to a DID. The difference is that they mandate the DID spec and you do not. Which is totally fine! Just figured I'd let you know :)