Also the penalty isn't very high here. Someone impersonated a domain on a burgeoning protocol for a short while. So what?
We're talking about folks setting up a custom domain for a personal social media presence. If they can handle nameservers and DNS records, they can handle a folder with a dot in the name.
That's the problem with expecting people to agree with and follow standards.
You've effectively described what happens when people don't agree.
https://wiki.archlinux.org/title/XDG_Base_Directory
I support both well-known and XDG because I think the benefit outweighs that perhaps they could have been designed better. But I don't think that those who opt out of it could only be doing so out of ignorance.