I'm also struggling to see the point of this.

I put a name in the hosts file (or DNS) so I don't have to remember the IP.

Now I have to remember the hostname (optional), the internal IP, this external domain, and the system needs to have nameservers and access to the internet.

This just seems backwards, it's more work and requirements, for what advantage?

Collecting everyone's hostnames and internal IPs. They got a privacy policy?

How is this better than adding a pair ip-host to etc hosts?