If the hostname should always be mapped to 127.0.0.1 (which appears to be best practice), then it is possible for /etc/init.d/hostname to manage the 127.0.0.1 line in /etc/hosts and ensure it is set to the current hostname at system boot time.

This would ensure that /etc/hosts is properly configured for all Funtoo Linux users and remove a small (but often forgotten) installation step.