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Would I be better off/faster just to drop the table and rebuild it every time?
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After you have dropped your table, where would you get the new data from to reload it?
What would be the gain to put your data in a database, but keep it up to date in another system? You might just as well print everything on paper and next throw all the pages away.
I think what you need is
1) a way to do a one time import of your current data from Excel in a MSSQL table
2) have software that will allow you to manage that table (create, delete and update DNS entries) from that time on, so you don't need your Excel spreadsheet any more
3) all processes that now use your excel spreadsheet will have to be adjusted to get their data from MSSQL.