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Blockchain technology has given rise to something called "decentralized domains" like .crypto that cannot be censored, nor rented (in the case of namebase.io), unlike DNS domains like .com

Is the .onion domain decentralized? or how does it compare to blockchain domains in terms of decentralization. Clearly both cannot be censored. Is onion routing itself an indirect form of decentralization?

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It's decentralized in significantly different fashion than .crypto domain. In blockchain-backed domain system you can claim any name not claimed by anyone else. In .onion all you can do is to generate new private key that maps to SOME domain name (hash of your key). Period. Unless nobody else knows your private key, nobody else can publish hidden-service on that domain name. But you can't select specific domain name, you just got random one.

So answer to body of your queston (is domain decentralized) -- yes.

Answer to title of your question (are sites decentralized) -- generally no unless you use something like onionbalance.

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Basically - no: the way you're accessing them is decentralized, but the sites are quite centralized to the very HS server serving them.

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