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Rob,
I think the Domino and Hosting partitions can certainly use the AS license. According to IBM Knowledge Center, “On an assigned logical partition on certain medium and large Power Systems™ models that have the IBM® i operating system, you can use an IBM i Application Server processor entitlement that allows minimal use of DB2® for IBM i. On such a partition, you can run products such as WebSphere® Application Server or Lotus® Domino®, for example, that do not require DB2 for IBM i to run. The logical partitions with this option can also host applications that access DB2 data located in other systems or logical partitions.”
There is an API to use to tell the system you are using the AS licenses in a partition. This is strictly for license record keeping purposes and does enable/disable any OS features (See Techdoc link below).
There is a significant cost savings if you can use the AS license. On a P20 system (S824) it is a difference of $44k vs $9k for a full license vs Application license.
IBM Knowledge Center 7.2 IBM I Application Server Licensing
http://www-01.ibm.com/support/knowledgecenter/ssw_ibm_i_72/rzam8/rzam8i5osapplicationserver.htm
IBM Techdoc Application Server Licenses FAQ
http://www-03.ibm.com/support/techdocs/atsmastr.nsf/WebIndex/FQ130449
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