Also, look at blocking DNS as an alternative to in-browser blocking:
For example, some sites won't let you in until you unblock ads. With an extension you can use the in-browser UI to whitelist that site, with a HOSTS file you'd have to figure out exactly which domains got blocked, then update the HOSTS file, and finally restart the browser & flush the DNS Cache Resolver for it to take effect.
Again, it works, it is just a bad user experience.
I think I'll be the judge of that, given that I'm the "user" in this "experience" ;) It works just fine for me.