Comment by Pxtl
Yes, but the user had to go through the process of "wait do I still have that email address? Did I receive it?"
Like, let's say I have an email address pxtl@example.net, and I used that to register an account on service.com, and example.net goes under.
In theory I know that this event has occurred, I no longer have access to my email address at pxtl@example.net.
So I log into my service.com account and get told "hey your email was pxtl@example.net - example.net has changed ownership. Is that still your email?" and I'll say "no" and put in a new email.
Or maybe I don't realize that example.net is gone. So I try to verify the account, find that I'm not receiving the email, and realize my mistake and set up a new email account, and click the button that says "I did not receive the email". The authentication server can prevent this window of time being an attack vector by forcing a delay between email validation and password reset, and by de-validating the email address (and treating it as a red flag on the whole domain) if the user clicks "I did not receive the email" a few minutes after the email address has been verified.
And if I forget my password and try to reset password on service.com using my unverified pxtl@example.net? "example.net had an ownership change since this email address was registered, please use another means to reset your password like SMS". Which is the main benefit of this process. Which I know doesn't require full verification.
Now, obviously the WHOIS updateddate is a noisy signal. Ideally the DNS system would expose a more granular ownership-change date - for example, gmail.com lists a WHOIS updateddate of July 11th 2024. UpdatedDate isn't supposed to change with every renewal but lots of things aren't supposed to happen.
Following up on this: Apparently my knowledge is out-of-date.
WHOIS has been superceded by RDAP, and RDAP provides event data for registration and re-registration. So even better!
edit: it doesn't seem like registrars actually do re-registration, and many cctlds don't even use RDAP yet.