If your DNS server is in the cloud, your ISP can still see your unencrypted queries to that server. If it is at home, your ISP can still see the unencrypted queries of that server to the root servers.
Unless you encrypt the traffic, DNS is transparent to the ISP whichever way you set it up.
And unless you are also using a VPN, the ISP can learn most of what it can learn with DNS just by looking at the IPs you send packets too. Most commercial websites that matter aren’t sharing IPs.
And as you and others have said, it can be done by looking at IP addresses i connect to as well.
What I do achieve is that nobody has a "full" picture of me, but only some subset of data that I transmit.
I also use two independent ISPs in a loadbalancing/failover configuration, so that helps with the cause as well, thougb my primary use is fail-over since I am in this internet business :)