Description of problem:
It is not possible to change the hostname across reboots using the
Version-Release number of selected component (if applicable):
Steps to Reproduce:
1. Add <NAME> to /etc/hosts
2. Do "hostname <NAME>" in a terminal as root
4. Observe that the hostname has regressed to "localhost"
Hostname has regressed to "localhost"
The hostname should be <NAME>
That's not what hostname(1) is for. Use redhat-config-network.