Thanks for all the responses. I figured that this probably wouldn't be practical a while back, but even when I know things aren't gonna be the best solution I still tend to keep trying anyway to learn a bit more by overcoming problems. Like how to quickly convert a huge hosts file in a single row list seperated by semicolons.
But I think I've learned about enough through this attempted method by now. I sure know a lot more about Avast than when I started.
Hadn't considered the option with AdBlock and it seems that I might be able to make a custom list for it so that will be my next challenge.
Yeah I know it's probably overkill anyway but nice to have something to work on.
I could cut down the hosts file and probably be just as safe, I hadn't really noticed how big it got until I started needing the DNS client service. But I just feel like if I can get around this problem without removing some lists that would be a better solution. I'm actually using HostsMan with lists from MVPS, hphosts, Spybot S&D, SomeoneWhoCares and some more.
But it is a very good point that the hosts file blocks traffic outside the browser too so I will probably end up with a smaller hosts file with mostly malware and then a huge AdBlock list.
Might look into tweaking DNS caching a bit too, that seemed like a pretty good idea.
Thanks again for all the replies.