I've seen an ad of this on facebook maybe a year ago I think, IIRC. I can see that this will make a lot of people love to have their own domains.
But there's that lack of marketing from the zil team with this feature that they're tryna do.
I still remember when NameCoin was released, back in the days. It revolutionized the way we register domain names. They did an amazing job promoting it. Maybe you guys should contact many hosting providers, and offer an some sort of integration, tutorials, wallets, etc, just to have more impact on awareness.