As opposed to Tor use, specifically?

a) Used where Tor is unacceptable, such as some university networks, and workplaces where using anonymization such as Tor/VPN is prohibited by policy.

b) When using Tor protecting yourself from the Tor endpoint collecting information / statistics on what you are visiting.

It seems to me like these DNS tricks are parlor tricks in a security sideshow. Any attacker that could see your packets can also see who you are connecting to. It's pretty rare that SNI does anything relevant to a real threat model.

I think a false sense of privacy is at least as dangerous as the alternative.

Yes they'd see that you're connecting to one of the largest reverse proxies in the world.