I don't think this is going to go away, as there are other application for Bitcion which can use this same principle. As I've tried to abundantly explain, the method of "attack" here is also a more generalized database for other kinds of data besides DNS records.
The benefit to Bitcoins is in regards to the mining activity needed to produce block chains containing non-financial data: Either that CPU activity can be applied to the main Bitcoin block chain and thus strengthening Bitcoin as a whole or it can be applied to a "parallel currency".
If people want to use fake Bitcoin transactions and use either the timestamp or some other method of encoding data into a regular bitcoin transactions, that is fine. But what I am against is the main Bittorent protocol officially sanctioning some kind of Domain registry protocol, or any other arbitrary data protocol for that matter. The chain still benefits from the increased cpu power, without having to create a different transaction type.
Would you not agree that at least for mainstream adoption, you wouldn't want to confuse the message about what bitcoin actually is?
And FWIW, there is not more "built-in" demand for another alternate currency. If anything, only being able to use them in a DNS setting makes them a less viable competitor to Bitcoin.