Since the cache poisoning days, I have always run a local custom root.zone. These days I use it to redirect traffic to a forward proxy that holds DNS mappings in memory, but one can put any DNS data into that zone, e.g., the A record for example.com. This reduces the number of DNS queries to resolve example.com (assuming it is not cached) to one instead of three or more. One can prevent any DNS queries from being sent over the network if one runs an authoritative DNS server serving a custom zone with the required DNS data listening on the loopback. In any event, an authoritative DNS server that functions as a root server does accept recursive queries.
For this approach, I require bulk DNS data. However I do not need DNS data for every domain on the internet. Consequentially, it is not a large amount of data. Contemporary computers usually have more than enough primary storage space to hold it.
When I request zone files from czds.icann.org or extract DNS data from publicly available UDP scans, two methods of obtaining bulk DNS data, I am not disclosing any information about what domains I plan to look up via DNS in the future. Obtaining bulk DNS data does not reveal as much as doing piecemeal lookups, not to mention doing them contemporaneous with HTTP requests to the IP address returned by the queries. Intermediary DNS caches will see all lookup activity, as would authoritative nameservers for a domain if I query them directly. Obtaining bulk DNS data generally does not suffer from this problem.
Even more, I am not sure I understand the privacy issue around an authoritative nameserver seeing one's requests, e.g., from a stub resolver or a local cache. If I am going to visit example.com, the the operator of example.com will see the HTTP request. Why would I care if the operator of example.com's nameserver sees the DNS requests. If the concern is that network observers, not the operator of example.com, will see the contents of DNS requests made to example.com's authoritative nameservers, then that is exactly what DNSCurve prevents. Encrypt the DNS packets.
In the end, I believe bulk DNS data served from the loopback provides the greatest privacy, not to mention the best performance.