>Surely .onion could have been handled in the application, without 
>pushing it down to the resolution layer.

I have to say I'm startled to see that people here aren't aware that
.onion is entirely handled in applications.  The usual implementation
is a modified SOCKS proxy that treats .onion names specially.

The point of reserving .onion in the DNS is first to ensure that
nobody allocates it as an actual DNS domain, and secondly to encourage
developers to stub it out in DNS resolvers so that .onion requests
don't leak into the DNS.  The only thing that anyone's asking DNS
developers to do is to fail .onion requests rather than forwarding
them along.

R's,
John

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