dnsmasq is a general purpose dns (and DHCP, but let's ignore this for the 
purpose of this conversation) server.
The dnsmasq package installs itself and starts listening on all interfaces. 
That seems like a reasonable default behaviour for a general purpose caching 
dns server to me.
libvirt uses dnsmasq (the binary, not the service) to provide dns and dhcp 
services to virtual networks. If you're installing dnsmasq and libvirt-bin 
alongside each other, you have to work out the conflicts yourself. I'm not 
convinced there is a reasonable default fix for this case.

-- 
packages dnsmasq and libvirt-bin conflict with each other
https://bugs.launchpad.net/bugs/231060
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