DNS-level blocking doesn't work very well. It only blocks requests to 3rd party domains; however, publishers can just turn to 1st party solutions, and many do just that.

E.g., DNS-level blocking will not block the sponsored links in Google's Search or the ads on YouTube. And while my NextDNS has blocked ads on my Samsung TV, it was unable to block ads on the new Max streaming service (former HBO).

I guess it depends on why we're ad-blocking. If it's for privacy, I guess it's fine, but 1st party requests can and do share your data with first parties, with just one more level of indirection.

I, for one, block ads because ads can be dangerous for my family and even for myself. I don't want ads because I don't want behavior modification, or malware. I also don't want my son to watch ads for services that should be illegal, such as gambling services. And don't get me wrong, I'm one of those people that actually pays for subscriptions to avoid ads, I'm against freeloading as well.

So, DNS-level blocking is just not enough, unless you're happy that you're at least blocking some ads on the scum of the Internet, but then I'm personally not interested in those websites anyway.