It Works!
A simple Tesla Overlay to request atmosphere to reload the hosts file, and to toggle on/off hosts file entries. It will read all files in the /atmoshere/hosts/ directory.
All lines starting with # are treated as section Headers.
If the line starts with a digit, it is expected to be an IP address and toggleable.
Toggling is performed by prepending or removing a ;.
All other lines are simply ignored.
Hosts files are reloaded in DNS MITM each time the overlay is hidden.
Simply install by unzipping and placing the .ovl in /switch/.overlays/.