Yes, the problem persists in Hardy Heron Alpha 5 (with the exception,
that it's no longer modifying the 127.0.0.1 line, only the 127.0.1.1).
Even worse, I wasn't able to change the domain name in the domain name
field. It worked once or twice and after that, every time i changed
domain name, after reopening the dialog there was the old value.
** Changed in: gnome-system-tools (Ubuntu)
Status: Incomplete => Confirmed
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[network-admin] setting domain name changes localhost alias only for the first
time
https://bugs.launchpad.net/bugs/72341
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