The Boot from Host configuration requires a permanent connection between the powerline device and a local host having some type of persistent storage. In most cases, the powerline device and local host are co-located, possibly on the same board or same chip, and act together as an integral unit. Essentially, the local host provides persistent memory for the device.
The Boot from Host configuration lets the local host decide which runtime parameters and firmware to download on startup. This offers a considerable degree of product adaptability, allowing different parameter and firmware combinations to be downloaded based on external factors.
In a Boot from Host configuration, the processor must act as local host while the device is booting but it can also act as remote host when upgrading other devices. The former is a design requirement and latter is a design option.