Github user jacksontj commented on the issue:

    https://github.com/apache/trafficserver/pull/1079
  
    If the HttpSM skips hostdb not only does it skip the DNS lookup (which as 
@jpeach mentioned is already skipped) this will skip all `last_failure` 
detection. So, it seems that the assumption is that if the destination is 
localhost its okay to not check -- which IMO is wrong because its just another 
endpoint to talk to, so we want to have consistent behavior. IMO we should 
remove this special casing for localhost all together.


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