I like the idea of adding a fake cpanel subdomain for 169.254.169.254 so that script kiddies will start port-scanning their own hosting provider, which will likely get them flagged/banned.
It is more likely they were looking for a DNS server with a big response packet for use in amplified DDoS attacks.
There are loads of big TXT records on many domains that can be used for amplification attacks. [1] These are just a few by the way, I transparently filter many TXT records on some DNS servers for this reason.