I talk about local network applications. It is totally acceptably that a host name can be used in many networks and subnetworks as long as it's unique, this is also handled by the protocols.
I give you a real world example scenario: I make a presentation and I want to use my laptop and and connect to the web server on my phone. I'd just go to like
http://bensphone in the browser and since both laptop and phone are in the same network I'm done connecting to the phone. No hassle to look up the phone IP first.