Its a good idea in theory but was never put to much practical use. Several years ago there was an update to Mozilla Firefox that broke compatibility with the Namecoin plugin that allowed people to host websites under ".bit" domains. Last I heard there is still another way to do it, but its not widely used.

IMO the reason why decentralized domains never really took off is because Tor already does a pretty good job of allowing for uncensorable websites. The URLs just aren't as memorable as "nutildah.bit" or something.

With ENS, yes its great that you can just type "nutildah.eth" in an explorer or in Metamask and it will instantly convert to the ENS owner's ETH address. But AFAIK they aren't actually being used as website domains.