Agree, but there is one thing that saves the .eu extension: Europe is gradually transforming from a bunch of countries into a union of states with a strong European identity. This is a political and economical process that has been going on since 1951 (six countries forming the European Coal and Steel Community). This treaty of six countries has evolved in a still expanding union of almost 30 countries with a European Parliament, a European Central Bank, a European Court of Justice, a free trade zone and 500 million inhabitants generating almost a third of the worlds GDP.
With a growing European Union the European Identity will also grow stronger making the .eu extension more and more attractive. This will not happen overnight, but it will happen.