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I'm with firebat on this one. The hosts file is a tcp/ip helper / lookup file and it was never intended for use as an ad blocker. While it may work (screwing with domain name resolution), a tool specifically designed for the purpose would have to be more user friendly and full featured. 99.9% of all computer users should never touch their hosts file.

There's also the security risk involved (if you don't inspect the file yourself before use). If a popular commercial site was spoofed, and your hosts file directed you to the fake address when you went to, say eBay.com (or Amazon.com ...), there'd be no way for you to tell the difference.

If your method works well for you, then great TAS... go for it. I just don't think this method is appropriate for widespread use.