If, say, fu.mydomain.com and bar.mydomain.com have the same IP (basically the web address), apache will know which content to serve based on the hostname the user typed in to get there, and looks it up in the ServerName entry for that VHOST.
Putting it in /etc/hosts won't matter, since it's all based on the DNS.
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If, say, fu.mydomain.com and bar.mydomain.com have the same IP (basically the web address), apache will know which content to serve based on the hostname the user typed in to get there, and looks it up in the ServerName entry for that VHOST.
Putting it in /etc/hosts won't matter, since it's all based on the DNS.