It's basically used for service discovery. At a certain point, you have too many different devices which are potentially changing to identify them by IP. You want some abstraction layer to separate physical devices from services and DNS lets you so things like advertise different IPs at different times in different network zones

That "internal network" hosts an awful lot of stuff- it's not just network hardware, but services that mostly use DNS to find each other. Besides that, it's just plain useful for network devices to have names.

(Source: Work at AWS.)