The pseudo-random domain name generation for the rendezvous point is a clever idea. The common way for a botnet to communicate with its botmaster is usually done via a single rendezvous point. Since this rendezvous point is static, whoever controls this static location owns the botnet. This poses a problem for the botmaster since this rendezvous location is the weakest link of the botnet. The botmaster can lose control of the whole botnet if the server at the rendezvous point is brought down, or if the IP is blacklisted. Fast flux, where the IP address bound to a domain name changes rapidly, was an attempt to foil IP blacklisting, but fast flux cannot protect against domain name blacklisting.
The pseudo-random domain name generation is the measure taken against domain name blacklisting, since blacklisting a large list of non-static domain names is impractical. With this, the current weakest link is eliminated.
One downside of having many rendezvous points is that...