If you're using cPanel when someone creates say a subdomain or adds an add-on domain it won't work straight away as you need to make the changes on the DNS server.
Edit: You can use wildcard DNS if you wish to avoid this. You will still have problems with add-on domains, though.
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Not problems, I don't think that's the right word - but slowdown in site-going-live time as you would then have to add the domain to the managed DNS provider as well as add it into cPanel or other control panel (some may not allow you to unless it confirms that it's on the local nameservers, depending on how it's configged.)
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