The name database host, how the name indicates "the server that hosts the database", should be the server ip, that hosts that database. I don't see any relation of it with the scripts that try to access it. But conversely, what I see the explanation mostly is :
"As long as the program ( php/.net scripts ) are on the same server as the database, which is the case with our servers, you will want to use 'localhost' as the database hostname.If you are needing to test an external connection, you can use the domain name (if pointed to our nameservers) or the server IP address"
It means, the scripts location decide the "database-host" ?
So, does that mean this terminology is confusing ? Also, why something called database-host needs to be configured ? What is it's importance ?