Well there will of course be some control over what goes after the dot, but it would seem that registries will have the biggest say. It all has to be input into the DNS, so nothing will work until it has been sanctioned by ICANN.
What has just occurred to me is that if the domains are done by aliasing, there is probably no reason why all second level domains in IDN cannot be presented as first level. The Chinese have already been tinkering with their own DNS internally to make IDN.IDN resolve and they have three that resolve as top level IDN, but they obviously currently have only one top level country code. If the Dname proposal is carried, I cannot see why the 30 or second level domains that already exist, could not be aliased by first level Chinese characters. That woud create the possibly of China effectively creating a virtually unlimited number of top level IDN. Now that would promote some debate!!!
Perhaps Dname could then be extended to aliasing ASCII domains and then we would effectively have the flat name space that is being advocated by a fervent minority. This could be done without any detriment to existing system, but the Aliases would be universal and would not require a pluggin. It could also be a useful little money spinner for ICANN, as I guess a fee of $10,000 dollar a year for a Dname alias would not be excessive. The only terms that would be invalid would be those reserved for TLDs, that would mean that anything over four characters would definitely be valid. Dot info is the only fly in the oinment for permitting anything over 3 characters, but I don't suppose that would be an insurmountable problem.
It could be that any Top Level request with more than 3 characters, be referred straight to the Dname system before going through the DNS. Browsers that redirect requests to Google and Yahoo results would of course need to be banned.
Best Regards
Dave Wrixon