the domain name just redirects to where you want it to go, it's just to make it easier for people to remember your site address, rather than something like http://awesome88.randomhostsite.com you can redirect to your blog or what ever you have. the advantage of having seperate webhosting is that you can store anything you want online, create subdomains, email addresses etc.... essentially it means have more freedom with your site. can be a little hard to get your head around at first, but ask away cause there are a few people here that have experience with this kinda thing.