It's not just ads, if you're concerned about privacy then DNS-level blocking won't cut it. For example, you can't block cookies or third-party scripts via DNS blocking.
> So all in all, I don't see much benefit from DNS adblocking
The benefit is as a tack-on for a home network for devices and traffic that doesn't go through a web browser. E.g. for mobile apps connected to the network. But once again, as far as privacy is concerned, that won't block e.g. Facebook SDKs embedded in apps unless you block the relevant domain entirely.
> So all in all, I don't see much benefit from DNS adblocking
The benefit is as a tack-on for a home network for devices and traffic that doesn't go through a web browser. E.g. for mobile apps connected to the network. But once again, as far as privacy is concerned, that won't block e.g. Facebook SDKs embedded in apps unless you block the relevant domain entirely.