Description of problem:

Since version 0.8.7, host entries in the network config xml file do not work anymore:


Version-Release number of selected component (if applicable):
0.8.7

How reproduce
Steps to Reproduce:
1. create a default.xml network config file that contains static host entries:
virsh -c qemu:///system net-edit default
<network>
  <name>default</name>
  <uuid>86caxxxx-xxxx-4e4c-9db4-xxxxxxxxxxxx</uuid>
  <forward mode='route'/>
  <bridge name='virbr0' stp='on' delay='0' />
  <ip address='10.10.122.1' netmask='255.255.255.0'>
    <dhcp>
      <host mac='52:54:00:31:12:11' name='backup' ip='10.10.122.11' />
      <host mac='52:54:00:21:32:20' name='vm20' ip='10.10.122.20' />
    </dhcp>
  </ip>
</network> 

2. Dnsmaq will be restarted automatically (or restart libvirtd manually)
Verify the command line with:
ps -elfa | grep dnsmasq


3. The /var/lib/libvirt/dnsmasq/default.hostsfile file is created correctly, but is not passed to dnsmasq.
(--dhcp-hostsfile option)
  
Actual results:
5 S nobody    3227     1  0  80   0 -  1534 poll_s Jan14 ?        00:00:00 /usr/sbin/dnsmasq --strict-order --bind-interfaces --pid-file=/var/run/libvirt/network/default.pid --conf-file=  --listen-address 10.10.122.1 --except-interface lo --dhcp-range 10.10.122.1,static --dhcp-no-override

Expected results:

5 S nobody    3227     1  0  80   0 -  1534 poll_s Jan14 ?        00:00:00 /usr/sbin/dnsmasq --strict-order --bind-interfaces --pid-file=/var/run/libvirt/network/default.pid --conf-file=  --listen-address 10.10.122.1 --except-interface lo --dhcp-range 10.10.122.1,static --dhcp-no-override --dhcp-hostsfile /var/lib/libvirt/dnsmasq/default.hostsfile


Additional info:

Tested on Arch Linux