Some advantages that this doesn't look like this would replicate, (1) I can have multiple domains for the same device, say gitea.mytsnetwork.com and netxcloud.mytsnetwork.com can go to the same device (2) I can get real HTTPS certificates for those domains which I consider necessary nowadays if only just to prevent errors (3) it's "real" DNS so when my browser decides to ignore my system settings and use DNS-over-HTTPS instead everything still works.
EDIT: It looks like (2) is solved by the tailscale cert command. I'd replace that point by saying owning the domain is important to controlling the certificate for me. All that said, the more I read into this, this looks like a really well thought-out feature.