So you can create multiple addresses with multiple separate "domains" mapped statically in /etc/hosts, and allow multiple apps to listen on "the same" port without conflicts.
..actually this is very weird. Are you saying you can bind to 127.0.0.2:80 without adding a virtual IP to the NIC? So the concept of "localhost" is really an entire class A network? That sounds like a network stack bug to me heh.
edit: yeah my route table on osx confirms it. very strange (at least to me)
You can do:
python3 -m http.server -b 127.0.0.1 8080
python3 -m http.server -b 127.0.0.2 8080
python3 -m http.server -b 127.0.0.3 8080
and all will be available.
Private network ranges don't really have the same purpose, they can be routed, you have to always consider conflicts and so on. But here with 127/8 you are in your own world and you don't worry about anything. You can also do tests where you need to expose more than 65k ports :)
You have to also remember these are things established likely before even DNS was a thing, IP space was considered so big that anyone could have a huge chunk of it, and it was mostly managed manually.