I know octlets cannot exceed 255, the IP in the advice given is exactly what is is labeled as, an example. Also FTR it does work in forcing a server change.
No it doesn't, because it can't make a difference.
You've either had a lucky change, or changed something else, but editing the hosts file for this problem cannot make a difference because it's not referred to.
Once Windows has a name to IP address resolution it stop looking (makes sense, it's got an answer). And frontier is curently hard coding IP Addresses in the game. So DNS servers and HOSTS files are not currently referred to in Elite.
A HOSTS file is used to help perform DNS Name resolution lookups. That is, its used to convert human friendly names (elite.frontier.co.uk) to IP Address (83.222.231.12) But Windows looks at the HOSTS file very late in the process.
Once it has the IP address Windows then goes and tries to connect to the server. Computers (and this isn't just Windows, it's the way TCP/IP works) NEVER connect to a name. They can't. They only connect via IP address. And they use DNS (and maybe HOSTS file, but it's low in priority) to convert names to numbers. This is why your PC has DNS server entries as IP addresses and no allowance for a name to be put there.
What you're doing is putting an IP address into the HOSTS file to resolve to an IP Address. Windows will not look there, because Windows already got an IP address to connect to. Windows does not keep looking for other possible IP Address's once it has a resolution. If it has the wrong name resolution, Windows has no way of knowing. It just stops looking.
You can't put an IP address to resolve to an IP address. It's a concept that doesn't exist in TCP/IP. (You can alias a name to a name and repeat that infinitely. You can also set DNS to refer name A to name B and set name B to refer to name a, but that just creates a loop that gets no where).
I'm not prepared to guess why this appears to help your connection, but it's not related.