And as for your "simplified" method, kre62, many people have no clue even how to find their hosts file, much less to edit it.
I am in that camp, and I'm not ashamed to admit it. I've been a stock iPhone user since 2007, and am getting sick of waiting for Apple to implement things that I've wanted my iPhone to do for years now.
Jailbreaking is a pretty intimidating thing these days, and it's a lot of information to take in, what with SHSH blobs and all) So it's nice to have an application that will take care of that for me.