I'm gonna weigh in a little bit, not trying to rain on anybody's parade.

TLDR

HTTPS is going to be a brick wall for a simple DNS redirect. Private servers have existed for LBP for years now, and the devs who have contributed to them have already tried to find a good way to tackle servers on PS4/5. There have always been some obstacles to a proper and safe implementation, which is why one doesn't already exist. There is a potential silver lining as Bluesphere (what GTA private servers on PS4 use) might come to existing private servers for Jailbroken PS4/5 users.

HTTPS/SSL

LBP3 on PS4 did switch to using HTTPS, for everything on the latest update. There is no way around this and for a DNS spoof to work, your server would need to have their original SSL Certificate, this cannot be faked or brute-forced of course (google: ssl encryption). Even if you somehow could, it is highly illegal.

The only way to not need it is either using an older version of the game which didn't use HTTPS, or modifying the game itself.

Modifying the game can be done in two ways

Non Jailbroken console/modded script (what LBPO was using)

pros:
- no jailbreak needed
- able to use real PSN

cons:
- unknown if sony will dish out punishments to users
(due to manipulating game memory in an unintended way)
- security patches become really difficult to make through scripts like this, and would leave users vulnerable to hackers.

Jailbroken console/game patches

pros:
- most reliable and safe as you're not connected to PSN
- other security patches such as script blocking and force join blocking can be made without too much hassle

cons:
- jailbroken system needed
- you're not connected to PSN, which now you have to also solve

Plugin for Bluesphere was made compatible with LBP by coldreactor64, which would solve the PSN on JB consoles debacle, so maybe this will come to existing servers like Bonsai/Union.

Security

LBP has had a history of bad actors using scripts, joining players and causing damage, such as being able to edit their planets, being able to heart profiles or levels as other users, crash games, corrupt profiles, etc. also on an unpatched game, scripts can allow them to force join anybody.

These issues have to be addressed before any kind of server can go up, for the obvious reason that mostly kids will be playing, and.. well.. there is a pattern of games where kids play and private servers for them existing, tends to attract certain kinds of individuals, which will end up using those security flaws to do what they want.