I know this is probably an age-old question, but what is the better practice? Using a domain model object throughout all layers of your application, and even binding values
DTO is widely considered an anti-pattern nowadays, and the advice is usually "avoid them at all costs".
One of the main advantages of an ORM framework like Hibernate, is that you can use domain objects at all levels, and don't really need DTOs. The caveat, of course, is that you have to dedicate sometime to THINK on those relationships: when to use lazy fetching, when to use eager, etc.