#1 - The hosts file doesn't run. It just is.
It is a DNS lookup table so that your computer doesn't have to lookup the DNS record for known sites.
With the fluidity of websites these days, it is no longer needed or recommended.
That is the "normal" use of the hosts file.
The MVPS hosts file is different. It is the same hosts file, but used for a different purpose. It stops access to websites by telling your computer to not bother looking them up, and just going to 127.0.0.1 (your own computer) to go to that website (which is not there) and fails.
It is designed to stop you going to advertising websites and downloading ads. (and the associated cookies).
It is up to you whether or not to keep it. Go back to where you got it from, read up on it, and make an informed decision. :)
(You could achieve the same effect by creating all those rules (deny all) in Blink)