Terraform works well for many cases, but the fact that you had to “figure out how to do it properly” kind of proves the point—it’s not inherently designed for dynamically changing infrastructure within a single apply cycle. If it were, you wouldn’t need external coordination to handle something as simple as "create DNS records for all instances, even if the number changes at runtime."
At the end of the day, Terraform is great for declaring infrastructure, but it lacks the flexibility of programming infrastructure. If you’re happy with the trade-offs, great—but let’s not pretend those trade-offs don’t exist.