There is no advantage to non-dedicated servers. Matchmaking is not specific to console games and client hosted servers.
Other than cost, I don't think I've ever heard a legit advantage to client hosted servers over dedicated.
Who said dedicated servers don't have matchmaking? Plenty of them do. Left 4 Dead on the PC comes to mind.Paragon Fury said:Dedicated Servers provide a better, more stable connection, which provides a fairer game environment.
On the other hand, Matchmaking provides a randomized, fairly skill-even experience to everyone, and breaks up communities and groups, providing a fairer experience to everyone involved.
The key is to do it like Frontlines and Bad Company 1/2 (on the 360) do; games themselves are hosted on dedicated servers, but matches are made through a Matchmaking system. You get the best of both worlds while doing this.
Other than cost, I don't think I've ever heard a legit advantage to client hosted servers over dedicated.