The main issue is collisions. For that reason alone it will probably never take off. I have a reasonably obscure name, and even mine is taken in that system.
I sure that is a problem we could solve. For example you could have name.familyname-[UNIQUENUMBER].com That would work as long as the unique numbers didn't get to big. If they were categorised by country it's unlikely it would be more than 5 digits.