Ah perfect, not your keys, not your domain. I mean now domain jackings can be permanent and irreversible! Apple.com can literally be stolen by Tim Apple and there’s not a thing anyone could do about it. Another clear win for the blockchain. Resolving this kind of dispute is why we have central authorities in the first place.
You’ve got it backwards. When the keys are lost or stolen you’re SOL. The dispute resolution process would restore proper ownership via existing legal frameworks like it’s been done for hundreds of years.
You don't need proof of ownership to obtain a judgement in your favor. It would make the process easier to be sure but you can make the case based on historical ownership and other indirect proof that a judge will accept.
You don't walk into a court and have the judge say "what you don't have the receipt?! case dismissed!!" -- the judge isn't a parking meter.