This is interesting, I am guessing the use case for ip address certs is so your ephemeral services can do TLS communication, but now you don't need to depend on provisioning a record on the name server as well for something that you might be start hundreds or thousands of, that will only last for like an hour or day.
One thing this can be useful for is encrypted client hello (ECH), the way TLS/HTTPS can be used without disclosing the server name to any listening devices (standard SNI names are transmitted in plaintext). To use it, you need a valid certificate for the connection to the server which has a hostname that does get broadcast in readable form. For companies like Cloudflare, Azure, and Google, this isn't really an issue,…
> In verifying the client-facing server certificate, the client MUST interpret the public name as a DNS-based reference identity [RFC6125]. Clients that incorporate DNS names and IP addresses into the same syntax (e.g. Section 7.4 of [RFC3986] and [WHATWG-IPV4]) MUST reject names that would be interpreted as IPv4 addresses.