RH 7.0 with Sendmail 8.10 ignores any entries in the mailertable.
Regardless of what is in the mailertable file, all mail for the domains is
delivered locally, even if mailertable tells sendmail to deliver otherwise.
Have tried same config files on a RH 6.2 box and everything works fine.
The maillog simply shows that the mail was indeed delivered locally
instead of routed.