this post was submitted on 01 Jun 2024
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But ads are still often delivered by content delivery which is blockable by domain, hence the reason piholes work. Not that in-stream ads aren't the future, perhaps, but life finds a way.
What you're describing is not a man-in-the-middle proxy, but a simple DNS block. That's a very crude approach to blocking ads and notoriously doesn't work for YouTube and Google ads because they're served from the same domain.
I run a pihole myself but there's still a huge difference between browsing with pihole only and pihole+ublock. It's certainly not the answer to the Manifest V3 shenanigans.