In all seriousness, I don't see the justification for blocking "/etc/hosts" but allowing "'". The latter is probably a million times more likely to trigger a vulnerability.
The problem is that people who don't know what they are doing join the cargo cult and then impose these requirements on people who do know what they are doing.
If you know what you're doing, turn these protections off. If you don't, there's one less hole out there.