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Hmm, I would think scp would be way more secure if he can shell into both sessions? idk. There's probably a perfect use case out there somewhere. Still a neat trick, heck you could probably do it with any service, not just DNS, cause you're basically just capturing traffic to receive it...

I'd guess the use case would be someone trying to send files through a network that's mostly locked down (think: corporate network using a transparent proxy for HTTP, etc), but allows outgoing DNS traffic.

Been there, done that. A lot of public WiFi hotspots will allow outgoing (and incoming) DNS, by design.

It's unbearably slow (especially when you use SSL over it, which I'd consider almost mandatory if you do this) for anything other than email and maybe running a few shell commands, however. Applying additional obfuscation/whitening to the data stream to make it harder to detect makes it even slower.

"Better" use case - create a DNS client as a part of your Android/IOS app and send files from victim's computer to your own server :/