I'd really appreciate any input that anyone may be able to give me in this matter.
I could be wrong in my assumptions, but I have always understood this method as a way to simply host DTM functionality on your own servers for downtime/uptime/SLA reasons. 🙂 Meaning, you would want to go with this option simply because you need to ensure that DTM embed urls/scripts never ever go down and that they are lightning fast and never give you issues. 🙂 You would then use the script loading capabilities by configuring the DTM UI to load the 3rd party scripts or custom built scripts through rules. You would load them either on pageLoad top or bottom, domReady, or onLoad. There is more documentation on this option here and some reasons why you would use that option: