> how does PiHole help in regards to anonymity?By blocking many advertisers tracking cookies (by blocking all access to those hosts via point the DNS result elsewhere) it reduces how far your information immediately spreads.
Far from massively effective because it does nothing to stop 1st party tracking and those 1st parties sharing further, or 3rd party cookies for new hosts not in the blocklists yet, but it can still help.
My use of PiHole isn't really an anonymity/tracking avoidance thing, my priorities in using it are avoiding ad network related annoyances like drive-by install attempts from less reputable (and/or hacked) networks, auto-playing audio, pop-ups/-unders, bandwidth waste (particularly from auto-playing video clips), occasional attempts to access microphone and/or camera, etc.