DNS based adblockers have strictly worse adblocking capabilities than manifest v3 adblockers. I mean, sure they have their uses (eg. blocking ads/telemetry in apps or whatever), but bringing them up in this context doesn't really make sense.
I thought the whole issue with manifest v3 is that prevented extensions from being able to block connections? That DNS blocking is actual blocking, while the extension can only do filtering after the connections are made.
I'd rather have 100% of devices on my network have near 90% of all ads effectively ad blocked than deal with installing ad blockers on all possible clients. Sure, I use an ad blocker on my personal machine with firefox, but none of the phones besides mine does. None of the family that visits do. Barely any of my friends that come over do. None of the TVs and streaming devices and whatnot do. I am blocking more ads from ever reaching my network than the majority of people who only use browser based adblockers do.