i can confirm that i am able to do this if i am at least part of the
netdev group and unable otherwise.

for sake of completeness: this is not ubuntu bug, as i just tested this
on my new debian (sid) machine, and `traceroute $MYIP` (which has become
my favorite because working method of demonstrating this) showed the
changed host name as described earlier.

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SetHostName can be called by users
https://bugs.launchpad.net/bugs/195140
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