I am having exactly the same issue. I have changed the settings.cfg file so that hosttointercept = www.icloud.com, (as I wanted to use iMovie app), but when I have created the certificates, all I get is the following log:
21:57:41 DNSServer: Domain: gs-loc.apple.com
21:57:41 DNSServer: ***forward request
21:57:41 DNSServer: -> DNS response from higher level
21:58:22 DNSServer: DNS request received!
21:58:22 DNSServer: Source: ('192.168.2.111', 64795)
21:58:22 DNSServer: Domain: www.icloud.com
21:58:22 DNSServer: ***intercept request
21:58:22 DNSServer: -> DNS response: 192.168.2.20
21:59:20 DNSServer: DNS request received!
21:59:37 DNSServer: Source: ('192.168.2.111', 51057)
21:59:37 DNSServer: Domain: www.icloud.com
21:59:37 DNSServer: ***intercept request
21:59:37 DNSServer: -> DNS response: 192.168.2.20
22:00:36 DNSServer: DNS request received!
22:00:36 DNSServer: Source: ('192.168.2.111', 58327)
22:00:36 DNSServer: Domain: www.icloud.com
22:00:36 DNSServer: ***intercept request
22:00:36 DNSServer: -> DNS response: 192.168.2.20
It looks like PlexConnect intercepts the request (192.168.2.20 is my PlexConnect server), but nothing happens on the ATV. It just times out. It was working fine until I updated to iOS 8 on ATV. I really hope that somebody can help, as I have been trying to get this working all day, without any luck. Having Plex on my ATV is the best thing about it...