hi,
another reason is when u have a large n/w then if more than 2 different lan n/w (with different subnets ) exist then dns also helps in resolving which n/w a request belongs to. instead of sending a packet on all n/w for identification.. ofcourse as matrix7 says giving easy to identify with names r easier to remember m/cs rather than using the dot notations ip addresses.
-hth,
shail.