Asked that on the vmware forums as well, but they don't seem to understand what I am asking

Someone asked me for some advice as his vmotion stops working every now and then. He doesn't have DNS in his lab environment and he therefore uses hostfiles (2 hosts only so not a big deal).
Now I checked the hostfiles (on every host and vcenter) and they show
192.168.0.10 vcenter.domain.com
192.168.0.20 esx1.domain.com
192.169.0.21 exs1.domain.com
192.168.0.30 esx2.domain.com
192.168.0.31 esx2.domain.com
The 21/31 addresses are his vmkernel IP.
He told me that vmware told him to do that but surely that is rubbish?
First time I heard you add the kernel ip to the DNS. Surely it would roundrobbin with the hosts ip which is why he gets random problems ?
Or am I missinformed here ?