Indeed but what's the purpose of that. The SMTP server knows the IP address anyway and can DNS lookup if needed. The one chatting with server can say hello followed by any arbitrary string
Reverse DNS was added to SMTP servers as an anti-spam feature about 15 years after HELO was established.
But to be honest, I'm not sure HELO was ever really useful. In the very early years, it might have been appropriate to reject messages where the MAIL-FROM ___domain did not match the HELO ___domain. Not for long though.
HELO is not really used that much anymore. It's EHLO now. And response to it includes capabilities of the server. So it serves negotiation of those at the beginning of the session, too.
It's better to be prompted for those, instead of just sending them unannounced, in case client just want to switch to TLS first via starttls.