Using GoDaddy as DNS Server for Linode Instance

It depends on your needs. Essentially, there are at least 3 methods for resolving your domains:

1) Run your own DNS. You may setup nsd or bind or other similar DNS daemon, on your own server (or even multiple servers). You have full control, but you need to know what you are doing, if you break something then you get to keep the pieces.

2) Use the linode DNS servers. Essentially, you use the GUI in the linode manager to setup your domains and linode will do the rest for you. The advantage, is that you use multiple resilient DNS servers, for free, from a single interface along with your servers. You may even use the linode API to make automated/scripted changes.

3) Use a 3rd party DNS service, like goddady or whatever you like. Same thing applies as point 2 above, but there are some services which offer mode advanced features like DNSSEC, not available by linode. The disadvantage, is that you have to login to two different systems to make changes.

If I've purchased a domain with GoDaddy, for example, I tend to ask them to do something for that recurring annual cost. So I use GoDaddy for email forwarding and DNS (like in this case). I see it as a financial decision. A domain might cost me $25/year which seems a little steep if you think about it… so make them do more work for you.