It replaces DNS's pull-based architecture (contact a DNS server to get the IP address) with a push-based one (push the IP addresses to each /etc/hosts file).
Suggesting that a push-based, Ansible-based architecture will scale to hundreds of thousands of targets, with such pushes happening hundreds if not thousands of times a day, is a junior-level idea at best, dark comedy if I'm being charitable, and professional malpractice at worst.
There are two kinds of junior engineers. Only hire one of them. (being very wrong is fine. Being CONFIDENTLY very wrong is not)