Resolving local networks with Xip.io

I recently stumbled upon a brilliant service. Developing locally always involves editing the /etc/hosts file to resolve a domain to your local host and then having to setup DNS servers to be able to check on my mobile or tablet.
Xip.io seems to have solved this issue by creating a custom DNS service that allows you to resolve a custom domain to an internal ip address so when any other device does a lookup it resolves correctly.

For example; your machine is on 10.0.0.10 and you need to check it on your mobile. You don’t want to upload it to your sever, setup a host, setup the database and all that. If you set the host on your local machine as

www.10.0.0.10.xip.io

when your mobile tries to do a DNS lookup the remote DNS server extracts the 10.0.0.10 from the Domain name and returns that back as the IP.

You can use any precursor to the ip address;

host1.10.0.0.10.xip.io
host2.10.0.0.10.xip.io
shop.10.0.0.10.xip.io

Brilliant idea!