Cloudflare has repeatedly said that while they operate for profit, they take the long term view. By doing the right thing now, by being privacy focussed, they will be profitable for decades to come. This seems logical to me, which makes the second answer more believable.
While at the same time working to preserve people's privacy with things like giving out SSL for free, pushing for eSNI, running a public DoH server, building a service that makes sure all data from your phone to us is encrypted etc. etc.
* https://news.ycombinator.com/item?id=21071022
Likewise for 1.1.1.1 — when taking into consideration the local caching appliances that the ISPs have invested in, the lack of ECS would make the clients go all the way through the internet for the same content that's already cached locally by the ISP for users of all other decent resolvers — this will only contribute to increased costs for the individual ISPs, extra latency for users, and more competitive advantage of your products due to you diminishing the technological advantages of your competitors, without regard to the actual user experience of the users, or the reliability and scaling of the internet infrastructure at large.
Not to mention that such Netflix/YouTube usage, when going directly through transit providers and through the whole internet, would also subject the users to a greater chance of surveillance at large compared to users of resolvers that would access local copies on the caching appliance.
And Warp+ aims to be about that plus performance.
If you want to be totally anonymous on the Internet then I recommend you use Tor. If you just use a VPN then you may hide your IP address from sites you visit but there are tons of other fingerprinting techniques that can be used.
In the case of DNS information about the subnet, the query etc. is sent around unencrypted.
One is open to eavesdropping, the other is not.
To eavesdrop on Warp you'd need to do it all over the world, capture encrypted traffic and then try to correlate traffic. If your threat model is a global adversary capable of doing that correlation and you don't want sites to know your IP, then use Tor.
No, they can sit near your 1.1.1.1 servers and catch all incoming and outgoing traffic, watching connections to your 1.1.1.1 servers that initiate DNS queries and actual outgoing queries that 1.1.1.1 makes to authoritative servers and responses too.
vs
With EDNS sitting in front of the authoritative server of the site this actor is trying to monitor.
The latter is easier than the former.
One of the better alternatives is to get a VPN you trust that puts multiple users behind the same IP address and then operate your own recursive DNS from behind there. The VPN service itself could still log your queries, but at least they have plenty of competitors, and you chose one you trust, right? Or if you don't want to trust any one party, use Tor.
I trust Cloudflare much more than I trust any ISP I've had to deal with, including American ISPs when I lived there. I trust Google much more than any ISP, and I'm not particularly charitable towards Google.
Centralized DoH isn't perfect, but it's better than the status quo. The SNI hole is shrinking. My threat model does not include defending against the Mossad doing Mossad things with my email^H^H^H^H^HDNS[1].
[1] https://www.usenix.org/system/files/1401_08-12_mickens.pdf
That doesn't sound too bad, privacy-wise.
EDIT: I mean if you were to map all US IP's to a single canonical IP for instance.
[0] https://twitter.com/archiveis/status/1018691421182791680