as a person who deals with tens of thousands of machines/network devices, i disagree that it's a bikeshed. yes you have to refer to a database for specific information. but it can be a huge time saver if the information that is most generally needed is just there, not needing to be looked up.
for us, we basically have 4 types of information in a fqdn: datacenter, lan, type of host (web server, database, filer, router, switch, etc) and an additional datacenter identifier. after the root domain comes the datacenter, and if there's an additional subdomain that's the lan. after that is the host name which is a number prefixed by the host type. the number is a randomly-selected number within a certain range. the range indicates what datacenter it's in, so 4000-5999 are in one place and 6000-7999 are in another place (incase whatever you're looking at did not include the subdomains). now we can refer to 'ws1234' and know what it is and where it is. it still has much more specific information, but that can be looked up as necessary. since it's less random it's also easier to read hostnames to people and grep through logs.
after having worked with much more confusing naming conventions, i like this simple straightforward method because it's easy to read, talk about, and gives the basic information i need before i look up the specifics in the inventory db. can you do without it? of course. but does that make my job easier or harder?