You know, the UN taking over would probably be a good thing. For one, it would give it a stable source of income that isn't dependent on the generosity of rich countries. For seconds, it would allow the world to avoid such wonderful ideas as .suck as people screaming "this is a bad idea" might actually get listened to. And third, ICANN as proven time and time again it's a spoiled brat. Getting it out of the picture sounds like a win for everyone else to me.
I still don't get why "the internet community" asn't just said "Screw them. Let's create a non-profit with people who aren't such brats to handle this. ICANN can go do something biologically impossible to itself"
Hell, I'm even willing to be the first chairmain of such an organisation, with a non-renewable 4 year mandate to make sure the transition of even what ICANN currently does to that new organisation. That's one thing that should be forced on the board. You have a fixed term and don't get to do it more then once. You can bet it'll help avoid such wonderful "I won't let go no matter what" attitudes.