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