Unlike using a DNS or host file, with TrackerControl you can apply rules per host and/or per app, even block an app from using the internet at all. Also, one can log all the traffic and classify it per app, so it gives a lot of insight into which apps are communicating in the background and how often.
Note that the VPN that TrackerControl uses runs fully on the device (and TC itself is opensource) so there is no need to trust any additional third-party servers.
For Android, the VPN API is simply the only official and best-supported way of intercepting app traffic. Everything else requires root to mess with iptables, etc.
If you do not, you can use a personal DNS server(or a service) to modify the blocklists.
I just simply don't get the VPN based approaches.