I wrote this "service" and the answer to why I did it is three-fold. 1. I had used 2 services, blogger and shopify, which didn't support pointing naked domain names. 2. It took all of 10 minutes and 3. I somehow landed on an epic domain name.
The long answer is that I run a platform for high-availability sites. I don't want to manage the client's DNS and I want to have the flexibility to instantly move sites from server to server. The answer, is to setup a CNAME and have the clients point their primary CNAME (www) to a host where you control the DNS.
www.example.com CNAME to example.myhostingservice.com. example.myhostingservice.com would then either point to an IP address or a round-robin DNS setup.
That leaves the problem of the naked domain. Traditionally you'd point the naked domain to the Primary IP address and then do some httpd.conf magic to redirect the naked to the www (or vice versa). However this does not solve the problem of what happens if the underlying IP address changes.
Pointing the naked domain to a dedicated IP address which is not associated with where the site is hosted removes the problem of what would happen if you change IPs quickly.