> How is this different from how the 'leaders' of Hong Kong are 'elected'?
I'm not sure I want to accept that gambit. The point is that it's a fairly technical business (where 'technical' means both computer science and legal technicalities) and this really means that it has to be run by a technocracy. And what you see in the diagram is that a whole lot of technical communities around the world select the technocrats, most of them using open nomination processes. I think we can call it a demotechnocracy.
It is pretty much bound to be complicated. A shame that the underlying job of work (listing the TLDs and registrars, as I said on another thread) gets lost in the noise.