I'm not entirely sure why HN doesn't just display the full hostname. Displaying only the domain and TLD is actually harder than just displaying the full hostname, and I don't think there's a major risk of spammers using the hostname as some covert advertising mechanism.
> Displaying only the domain and TLD is actually harder than just displaying the full hostname
Perhaps it just reuses the result of some work it's already doing in order to cluster karma/number-of-replies/something else on a per-domain basis, for some sort of convenient analytics. Just a charitable guess.