What's their purpose?
The best I've manage to come up with is this post by Brian Dennis:
OSPF Point-to-Multipoint Network Type and /32 Routes
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Point-to-multipoint advertises the end points to overcome possible reachability issues between devices that are on the same logical subnet but do not have direct communication (i.e. spoke to spoke communication in a hub and spoke environment).
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His post seems kind of vague to me.
Consider these two statements:
1) In a point-to-multipoint network the next-hops of routes are changed to the ip address of the interface that sent the route, regardless of what router originally advertised the route on to the segment. This in contrast to a broadcast network where the next-hop is maintained due to the assumption that a broadcast segment supports direct communication between all routers.
2) OSPF can only exchange information between routers if there is a direct layer 2 connection. This could be an Ethernet segment, a gre tunnel, a frame-relay pvc, etc.
If we put 1 and 2 together, we get that on a point-to-multipoint segment, the nexthop can only be a router where you have a direct layer 2 connection, and thus have some kind of mapping, be it a frame-relay map statement, a static tunnel or an nhrp mapping.
If we always have a mapping for the next hop, why do we need the host routes? It seems to me that if you just remove these from the routing table with a distribute-list, it won't affect reachability.