why you need DNS for at server?
just use hosts file. why your server would need to resolve domains on the internet? client yeah, server no.
IP's can change without warning.
EDIT I might be off by one here.
But it's not an issue at all, and it provides a convenience that can be depended on by a lot of your dependencies.
Code may use domains instead of ip addresses (which provides resiliency), package managers like apt depend on domains. And so on.