You're missing the point that this default configuration is causing lots of non-fatal errors to appear in the logs.
For whatever reason, when you issue sudo on Ubuntu, it does a name lookup. With the way that pi-hole goes and whacks the DNS when it configures a static IP for you - it breaks the ability to look up the /etc/hostname name. That's messed up.
Someone even posted a problem about this a while back - *** SECURITY information for my-server *** problem with defaults entries - that issue closed because the person didn't continue to participate.
Again, my primary concern is that the install script, in the situation where you have a dynamic IP of the host - is tossing all sorts of error logs. That's not right.
Honestly - it's fine if the pi-hole never uses local lookups - but it should be able to resolve the /etc/hostname name.. (which is why I hacked /etc/hosts to fix it for my configuration)