Even if they eventually make DNS encrypted, even if encrypting TLSv1.3 SNI work properly (and both of these are pretty big ifs, BTW), the IP addresses will still leak, always, and with a much higher precision anyways. So, this we-don't-do-ECS-because-privacy is hardly a rational statement on Cloudflare's part in the end — it merely breaks the performance of their competitor CDNs without any real privacy angle.
They do solve archive.is. But archive.is's DNS servers have been configured to return bogus answers to queries from Cloudflare's servers.
> Archive.is does not block all requests lacking EDNS. They specifically block requests coming from Cloudflare's datacenters.
Whether you think that's enough to care about or not it's very different than the picture you painted.