Kodi is awful on any raspberry pi . I have a raspberry pi in my car as a headless music server with a dedicated dac . Havent tried a dns but it sounds interesting may give it a go.

have a look at pi hole https not only a dns server but also a dhcp server and an ad blocker. Its pretty cool.

so after the sucess of setting up my dns server, i decided to plug in a spare rpi2 and try my hand at setting up a webserver. I can safely say you can run your own website off a rpi2 i have a wordpress site set up on mine. Reading all the blurb on the subject, they reccon that it should easily handle moderate traffic. I already have 4 reseller hosting accounts so i could of just ran the site from one of those, but thought id try self hosting. Took me about an hour to set up https

Raspberry pi 400 is out, based on the pi 4 it's a complete computer in a keyboard. 95 GBP