> The most they can do now is spy on your DNS and redirect unresolved domains to some ad-filled page.
But this isn't really true either. There's a lot more that can be done with a packet stream than spy on DNS, even if the actual payload traffic is encrypted. A combination of DNS, SNI, IPs, and packet sizes and transmission patterns can allow fairly granular classification of traffic by type, and specific connections can then be traffic-shaped, e.g. by explicit throttling to some target bitrate or by applying differential QoS to them.
Just from DNS, your ISP can:
1. Infer shopping habbits.
2. Infer which communication services you use (flag users hitting signal.org)
3. Infer when you install, update, or open programs based on telemetry DNS, potentially the versions being run, and how long they run for.
4. Infer when you're most active, infer sleeping habits.
5. Infer probability of health problems if you're hitting more medical sites.
6. Infer political alliance from news sites you visit.
And much more.
Since US congress dropped the rules preventing ISPs selling this data this might be the most insidious thing your ISP can do today.
If you believe that a VPN provider is less likely to spy due to it being the incentive for a paying customer, then a VPN with a no-log DNS option is a huge privacy win. I would argue DoH with NextDNS by itself does more for your privacy than any VPN does with IP masking.
I do not believe that Google is not doing something with the DNS data.
Data is a commodity after-all.
Cloudflare if they use their DNS data, is likely to use it to improve their network and security products. Google likely uses it to sell intrusive ads.
I know which one I'm more comfortable with.
The most they can do now is spy on your DNS and redirect unresolved domains to some ad-filled page.