Well, the average user may not use this much. I wrote it when a school district that I work with wanted to use the internal DNS entries to navigate their internal servers/workstations.
So, by adding their machine names and IP addresses to the Localhosts panel, you can go to any machine and browse the network (Windows Explorer, Internet browser, whatever you want) by machine name, rather than IP address or the netbeui protocol. Actually, it seems like they had some kind of Inventory program that would scan machines and build an inventory db that needed DNS names.
Rather than entering each wkstn manually, they wanted an import script. So... I wrote one, based on the actual script used when you add entries manually through the server-manager.
Does that make sense?