So lets assume that the private key for 'bytemaster' has been compromised.   Bytemaster issues the command to invalidate it.  Now 'bytemaster' is up for bids to the highest bidder.  All trust must be placed in the public key and not the name itself.  Transferring the name to a new owner would have to reset the trust.

Seems like the solution to this problem is to have a 'backup key' such that when the primary key is nuked the backup key takes over.  There could be multiple 'backup layers'.    To transfer a name would require signing the transfer will ALL backup private keys.  When a key is compromised the backup key could then be used to replace the primary key without destroying the reputation of the owner.

Now a site like 'google.com' could give out the private key to 'trusted' admins and lock away their 'backup key' in a secure vault without having to assume the risk of their valuable 'name' being destroyed by one dishonest admin.