It would be very handy if we could use the name of the Ironic node as the instance hostname. The node's name are unique in Ironic and they could contain information such as rack number, rack location, node number, etc...
By default Nova uses the display name as the hostname for the instance we can keep that as the default behavior and have a configuration option in the [ironic] config group to enable/disable the behavior of using the node's name (if present) as the instance's hostname