We have single core network, hundreds of clients, 3 DNS domains. All servers and clients defined in DNS, and all with reverse DNS entries.
Only our DMZ clients are in host files. So we're pretty much fully DNS for NetBackup.
Also, our Solaris media servers all have "/etc/nsswitch.conf" setting of "hosts: files dns", otherwise client names of servers residing in DMZ take a very long time to resolve. N.B. Windows already looks to "hosts" first - so no need for similar setting in Windows.
All master and media servers have all of our DNS domains in their search lists.
If you have multiple sites, and each site has media server(s) and DNS server(s), then set media servers to look at their own site's DNS server first - not sure if this makes any difference in speed - but might help if links go down.