Devices are named after characters from books I recently read, trying to match the name with the character of the book. But for virtual hosts for services I use their purpose (wiki, files, feed…) because I wasted too much time updating all the bookmarks last time I migrated to a new server.
As other mentioned, an advantage is that it blocks ads on phone apps too. My other use case is to add extra DNS entries to name devices on my local network. Finally, after using pihole for a while I switched to blocky. It has similar features but it lacks the UI and the dchp server, but in exchange it uses much less resources. Since I didn’t use either of these it sounded a good trade to me