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Dyson says new gTLDs will kill the DNS

Kevin Murphy, February 7, 2012, Domain Tech

Former ICANN chair Esther Dyson thinks apps and new gTLDs will cause internet users to abandon domain names.
In an article for TechPresident entitled “Is the Open Web Doomed? Open Your Eyes and Relax“, Dyson writes:

Right now, we’re moving slowly from open data and APIs and standards, to a world of Facebook and apps. We’re likely to see abandonment of the DNS by consumers both because of those apps, and a tragedy of the commons where new Top-Level Domain names (.whatevers and .brands) confuse users and lead to more use of the search box or links within apps.

The point seems to run counter to the rest of her argument, which is that the open web will continue to be used even while Facebook carves away its own little corner of it and that the whole “walled garden vs open web” war is fought in cycles.
(At least, I think that’s what she’s saying, it’s not an easy read.)
I always find these arguments confusing.
If consumers are not using the DNS, where are these “search boxes” and “links within apps” sending them? IP addresses? How do the consumers know they got to where they wanted to go?