It seems that the list of destination IPs would then be determined by whatever the domains listed resolve to (I assume). Since it's trivial to update DNS records, I wonder if they could lead to automated blocking of whatever IP those domains point to.

With that in place, I wonder if that could ever be abused by these pirate sites. Imagine temporarily pointing your pirate site domain name at a valid IP address. When you do that, in theory ISPs (and now VPNs) would automatically block perfectly valid IPs.

This would only happen if the owners of the pirate site domains actually try to do something malicious like that, but I know there are instances in the past of ISPs blocking cloudflare IPs (which is a separate issue, but the scenario I just made up reminds me of it).