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I have noticed that the preffered site URL option in the general section of admin portal is not of much use as we have already connected the site to the domain

Is it any helpful or should I remove it from the theme.

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Q2A cannot know exactly what URL you want the "external world" to use as a reference to your site. So you need to keep it updated. It is not related at all with keeping DNS records updated.

For example, when you send an email, the email needs to contain an absolute URL, not just some kind of relative path like you would do to navigate your site internally. The site URL is used to build that absolute URL.
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