I use the package as part of my test suite for moving web servers to a new machine (or datacenter). My scripts create and restart the DNS entries as part of the move process for currently running sites. Since I haven't (yet), moved the current DNS to point to the new area before testing, I can use LWPx::ParanoidAgent to have it read from my local DNS server (and not the one in the wild) allowing me to test my changes before going live.
my $ua = LWPx::ParanoidAgent->new;
$ua->resolver(Net::DNS::Resolver->new(nameservers => ['127.0.0.1']));
I don't know if this will help anyone else... but I love it! thanks!