I tested exactly this recently and a hosts file dramatically helps browsing performance.
It's true there is an up-front cost paid when first loading it, and for the initial domain lookups. After initial lookups, DNS cache takes over.
The real benefit comes because countless requests for ads, tracking scripts and counters, etc, never leave your box. Network traffic is greatly reduced.
A comprehensive hosts file dramatically improved the performance of a relative's dialup internet connection a few years ago. A web that was borderline unusable became much snappier. And web pages had almost no ad adornments.
So on balance this is a very good thing. YMMV.