The referenced article is somewhat incorrect - word is that the governments aren't asking for the power for one country to veto ICANN. But it may prove that the governments are doing what they do well - using euphemisms to cover harsh intent.
ICANN pulls about a $1,000,000,000 (one billion) USD every year out of the pockets of net users in the form of fiat "registry" feels, i.e. about $7 per name per year to Verisign. Given that we are paying this much to get so little, we do have a right to dig deeper into what this expensive organization is actually doing...
At the end of the article we hear an ICANN employee repeating ICANN's mantra that ICANN assures the stability of net identifiers.
That description is false.
ICANN spends 99%+ of its effort on matters that have no reasonable affect on the stability of domain names or IP addresses, that is unless one includes trademark protection into the definition of stability - which is something for national legislatures, not a private body that purports to promote technical stability.
There is a cure to the common ICANN - which is for people to construct competing, consistent DNS roots. Those would contain all of the top level domains that ICANN recognizes - and perhaps some boutique ones as well - but would be outside of the ICANN mandate.
The word "consistent" is important - it would be bad if people resolved names and got surprising answers (sort of like the bad Hungarian-English dictionary in the Monty Python Tobacconist sketch.)
There is no technical way to prevent people from setting up competing, consistent roots. Nor is it unlawful. And it is often done in stealth by ISP's, smart companies, or individual users. DNSSEC does not affect competing consistent roots, but will require them to have their own root keys (subsidiary TLD keys aren't affected.)
Recent events - political in North Africa and natural in Japan - suggest that having a local ability to establish a DNS root could be a valuable tools to help speed healing of net communications when the net is torn by those events.
Long ago I suggested to ICANN that they get a monthly report from every top level domain of the top 10% or 20% of the second level names by query volume. From that ICANN could produce a Knoppix-like DVD that could be booted up and would contain a pre-populated root server with the familiar TLDs and those top 10/20% of the names. That sort of thing could be used to help kick-start local communications recovery after a natural or human disaster. But ICANN said "no, not our job".