Sure, but still, which domains a person uses can say a lot about them. Not to mention ISPs have access to a wealth of other information about their customers including physical location (down to the address, they bill them)
If you're already a Google user, use theirs - they are still part of the surveillance-entertainment complex, but at least they don't lie about DNS.
For shared HTTPS hosting (1 IP serving multiple domains), SNI (the domain) is sent in cleartext so the server can pick which configuration to use (SSL cert, etc). For sites that don't use SNI, they can still see you browsed there because without SNI, 1 IP = 1 domain.
I don't know the exact equipment and mechanisms used by ISPs today, but it's extremely likely that the surveillance works just based on sniffing every DNS packet, not just those sent to ISP resolvers.
Someone with a better knowledge of the current state of the art is invited to comment :)
I'd expect the ISP to know where their wires go though. Unless they're wireless.