I can confirm this issue and at least one problem that it is causing:
https://bugs.launchpad.net/duplicity/+bug/662334

Listed below are the differences in 10.10 and 10.04 behavior.
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10.10
$ cat /etc/hosts
xxx.xxx.xxx.xxx   ubuntu  # Added by NetworkManager
127.0.0.1       localhost.localdomain   localhost
::1     kanpai  localhost6.localdomain6 localhost6

# The following lines are desirable for IPv6 capable hosts
::1     localhost ip6-localhost ip6-loopback
fe00::0 ip6-localnet
ff00::0 ip6-mcastprefix
ff02::1 ip6-allnodes
ff02::2 ip6-allrouters
ff02::3 ip6-allhosts
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10.04
$ cat /etc/hosts
127.0.0.1       localhost
127.0.1.1       ubuntu.example.com      ubuntu

# The following lines are desirable for IPv6 capable hosts
::1     localhost ip6-localhost ip6-loopback
fe00::0 ip6-localnet
ff00::0 ip6-mcastprefix
ff02::1 ip6-allnodes
ff02::2 ip6-allrouters
- - - - - - - - - - - - - - - - - - - - - - - - - - -

-- 
NetworkManage does not set domain in /etc/hosts on DHCP connections
https://bugs.launchpad.net/bugs/659817
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