In this case it just acts as a DNS resolver. That's potentially risky when resources don't use SSL, but far less than a browser extension that can change a page in place, inject JavaScript, and record keystrokes on all pages.
Huh? DNS is hit even if the site is SSL. Unless the site has HSTS, and you've got to the site before; DNS poisoning is very much doable.
Are you thinking of some downgrade attack vector?