If you're outsourcing your NIP-05 identity to a third party service, you're entirely trusting them with validation and expose yourself to someone impersonating you.

This setup makes it dead simple and a one-time setup, it will maintain itself after that.

If you create new accounts just add on to nostr.json and profit!

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This way, you're still trusting your VPS provider.

Yes, but it’s a lower risk, much less likely to get targeted (you’re just one of thousands of VPSs, instead of known to be using Nostr/NIP-05), etc.

Overall a better set of tradeoffs from a trust perspective.