Bitcoin addresses need to go, but the wallets should be taking a more active role in doing this, not services. Bitcoin addresses are not like DNS, but more like emails, being sent to other people. Wallets should have a protocol to do a handshake send the bitcoin address and then display to the user
Yes, exactly, you nailed it.
We need user-friendly GUIs, and I'm sure we'll get them sooner rather than later. As you stated, Bitcoin is like DNS (or DOS, if you will). The Bitcoin protocol is a foundation layer (like HTTP) upon which many other things can (and will) be built.
The more we build onto that layer, the more value we add to Bitcoin. Think about the implications of what I just said when considering the probable future value of your BTC, dear reader.