I think that Larry's mostly kidding and it's not really some implied threat of violence in person. Just that we're better at politeness and restraint in person because we see a real human in front of us instead of something abstract on a screen.
Ahoy did a comprehensive video about it: <https://www.youtube.com/watch?v=uHQ4WCU1WQc>, and a video is a more appropriate medium for discussing and demonstrating video games.
The article is about running your own DNS server, which is, and must, always be available to everyone. What you are talking about is running a DNS resolver, but that is not the topic.
It's both, and more, in a way. But it's primarily a DNS tweaking tool, and does not support things like zone transfers. Which you usually don't need with a small-scale personal setup anyway.
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