I used to do that, but then all of those blocked domains start appearing in the ssh auto-completion alongside those configured in ssh config, which gets annoying.
I prefer dnscrypt-proxy over PiHole if you don't want a UI.
NOTE: A benefit of PiHole/dnscrypt proxy on a local server like the raspberry pi is that you can use it across your devices instead of just on your laptop.
Not sure what, apart from extra cpu cycles, pihole adds over this.
[1] - https://github.com/StevenBlack/hosts