Domain list is a list of somain that you associate to a mnemonic (the site id).
You can assign several domain to a same website.
In general the list is minmum of 2 domains.
The one with the "www" and without www.
Here it is an example of domain list with 2 domains:
www.domain.com
domain.com
This allow to create websites synonyms.
The domain list give the list of domain associated to a JMS site id.
When the Site ID is retreived, JMS is able to retreive the JMS configuratoin and therefore the DB connection and all the settings required by Joomla.
So the domain list drive JMS to the appropriate DB and therefore to the appropriate content and layout.
If you have developped and tested the new website on the master, you will just have to add or replace the list of domain with the new domain.
We also have customers that are using JMS to create different version of their website and when the website is ready, they just change the list of domain to switch to the new website