DNS is prone to going down a lot
My DNS is not prone to going down, why is that?
For networks, you take BIG chances
Oh no, my router at home has a blacklist of domains, that's a bigger chance than the average that has no blacklist. You talk a lot of shit.
Nah, my solution uses less resources. Less storage, less manual labour (after all, I only have to change the router, nothing else), less CPU (only one system has to deal with filtering, all the other systems spend less CPU than before, because there isn't even a TCP connection attempted to invalid IPs like 0.0.0.0 or 255.255.255.255 etc.
moving parts to exploit or breakdown
Hosts files are broken by operating system design, they're not meant to block DNS entires, they're not meant to handle large amounts of domains (look how it breaks on Windows), they're not even capable of blacklisting an entire domain without listing all of it's subdomains which goes into multi-terabyte files which Windows cannot load and uses far more memory than a simple wildcard blacklist on DNS server.
home users can make do with a hosts file they can easily manage
A large amount of devices in my home don't even support hosts files in any reasonable way. Tablets, game consoles, television, mobile phones etc. For the home user, this is probably a better and more wholesome way to handle blacklisting of domains because you won't have enterprise-level control of all your devices.