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I always thought .onion sites are end to end encrypted. "The rendezvous point simply relays (end-to-end encrypted) messages from client to service and vice versa." according to https://www.torproject.org/docs/hidden-services.html.en There's even a ticket to add a padlock to indicate this in TOR Browser https://trac.torproject.org/projects/tor/ticket/8686

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This is correct, hidden services are fully encrypted from the users browser to the tor relay running the hidden service

My understanding was that the connection prior saw the cleartext of the final destination's packets.

SSL was the way to make sure that end to end was encrypted so that nobody could read the data (mainly login/password info).

I think the only way to see is to be part of the tunnel architecture and see if my thoughts are right or wrong.

What you're saying is correct for connections from tor to cleartext sites. Hidden services are end-to-end encrypted. I'm not sure which cipher tor uses; maybe modern browsers are better in that respect.

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