I looked up Whois info for a domain and found this:
So my question is, for small sites, what’s the difference between using a “proxied domain”, and using fictitious information? The only real information you need is a valid e-mail address, and you can easily get a throwaway address through Yahoo or Hotmail. A registrar never needs to send you anything in the postal mail.
On the other hand, if you’re going to have a popular site and someone challenges the ownership of your domain on the grounds that the information in the registrar’s database is false, it probably would be good to have an actual mailing address and correct information underlying the record, so I can see where DbP is useful.