> You're conflating privacy with trust.
Confidentiality and authentication are two different things, but the things that provide confidentiality here also provide authentication. DNSSEC only provides authentication, so then you need something else to provide confidentiality at every point in the path. At which point you would also have authentication at every point in the path, so what does that leave for DNSSEC to do?
> DoH is only designed for last mile so useless in encrypting the resolver chain between you and the root servers.
This is true. DoH isn't the one to use between recursive and authoritative DNS servers.
> Currently there is no way to get a fully encrypted chain (the root servers would need to support DoT or something similar and they don't nor are there any plans for them to do so afaik).
DoT has a similar drawback as DoH between recursive and authoritative servers. The session establishment is expensive (more round trips, higher latency). That's not so bad for the link between the client and the recursive DNS, because you create a session once and use it for all your queries. It stinks between recursive and authoritative servers because the recursive server would need a new session for each authoritative server -- and a single recursive query can often require contacting three or more authoritative servers.
Fortunately DNSCurve has lower latency and can be used between any pair of recursive and authoritative servers that support it.
The root not supporting DNSCurve is an issue, but it has an obvious long-term solution (have the root start supporting DNSCurve), and in the meantime the recursive resolver could validate only the root with DNSSEC. The lack of privacy is much less impactful for TLD queries -- a query for your-local-oncologist.com tells an observer much more than a query for .com. Then if DNSCurve is used for the rest of the chain after the root, you have one authentication or the other for the full chain and privacy for all but the TLD query. You also then don't need any large DNSSEC records in the authoritative servers that support DNSCurve, which would otherwise be a DDoS vector.
> So the best (form a privacy and trust PoV) you can achieve is as I've outlined: VPN together with a DNSSEC resolver (with verification enabled).
I still don't see what that's even supposed to be adding over the VPN right now. The VPN handles the link between the client and the recursive resolver. You can only get authentication between recursive and authoritative servers for domains whose authoritative servers support some authentication, but hardly any of them support any authentication right now, and if you're going to add one it makes more sense for it to be DNSCurve than DNSSEC because it provides confidentiality in addition to authentication and isn't a DDoS vector.