The biggest problem with namecoin, is the fact that is it decentralized. the transition from ICANN to NMC would be hell. communist news network says google has over 5% of all Internets traffic.
that would mean the meta backbone of the internet would be almost instantly vaporized because google does not own the google domain. and they will never be able to get it back unless all the clients were patched.
not only that but namecoins are in fact destroyed from circulation when domains are claimed.
both ICANN and NMC would have to coexist. so the .bit domain would never be anything more than a hobby domain.
edit: pile all of that on top of the moderately complicated nongui they have. no average sane person will pop open a daemon and type in commands to buy a twinkie and the chair they sit their fat ass on.
WINDOWS INTEGRATION or lack of ultimately destroys any chance it ever had. the best use for namecoins is so botnets can operate even more decentralized than they already are.