If someone's account gets lost or hacked, the person with the most incentive to own that account is usually the original owner, so just give it to whoever is willing to pay the most, problem solved. We can call it "proof of stake", where you always stake a certain amount to keep owning your account, and when contested, whoever stakes the most gets it.

Poor people don't deserve rights on the blockchain anyway, it's not like they can afford the transaction fees, if they didn't want their account stolen they should have tried being rich, or buying into nearer the top of the pyramid.

Don't worry about people who pass away or lose internet for an extended period, we'll deal with that in v2, when we get "proof of death" and "proof of internet disconnectivity" on the blockchain somehow.

/s if it's necessary

Perhaps some sort of namecoin or ENS-like petname system with multisig or some type of scripting that enables different recovery methods.

For example, you could set your petname up so it can be controlled by a single keypair, which can be overridden after a certain time by a ring signature based on keypairs held by friends, family, peers, and trusted computing devices you leave in a safe deposit box.

Or maybe you could trust your identity with some centralized entity, but only as part of a 2-of-3 multisig with yourself and another trusted entity.

Basicially namecoin with bitcoin-like scripting controls.