But said countries could still see what IP addresses you talk to, and do a reverse DNS lookup ...
Sadly SNI destroys most of this privacy, but leaking less shouldn't be a bad thing. There's also other reasons you don't want people intercepting or re-writing your DNS.
Yeah, but put some strong emphasis on "necessarily" there.
I don't buy this argument. There are too many situations in which it doesn't apply. It offers a false sense of security.
Also worth noting that an ISP will generally go for the low-hanging fruit, but if your threat model includes a determined opponent then this probably isn't for you.
It's hard to argue that this isn't a net improvement over the status quo, though.