I can see how DNS over HTTPS addresses security, but I do not see how it helps with privacy. After resolving the IP address over secure connection HTTPS still sends the host name unencrypted, so one can just eavesdrop on that. And if encrypted DNS becomes widespread, I suspect that various state-imposed firewalls like one Russia will just look for HTTPS connection header to block a particular site.
needed for webservers because of multiple domains (SNI) on single IP address. Didn't read the spec, but couldn't be hostname encrypted in case of DNS resolving? (eg. hostname can be sent in http body).