First of all, AdGuard desktop and mobile apps are quite different from hosts files or pi-hole. For instance, they're also able to apply cosmetic rules. Also, and this is really important on Android (unfortunately we can't do that on iOS), AdGuard is able to apply different rules depending on which app makes a request.
The common example is dealing Facebook Audience network. If you need to block Facebook ads in third-party apps with Pi-Hole, you'll have Facebook official apps broken as well. With AG, you can keep the official FB app working and block it in third-party apps at the same time.
Second, on every platform save for iOS, AdGuard filters every network connection and not just DNS queries. There're already multiple examples of apps (for instance, TikTok) that switch to using DOH when they detect that there's DNS filtering messing with their domains. Eventually, every network-level blocker, pi-hole included, will have to control all connections as DNS simply won't be enough.
Regarding Pi-Hole, we actually maintain a free and open source alternative called AdGuard Home: https://github.com/AdguardTeam/AdGuardHome