Basically the way I see it iCloud private relay helps you in terms of safari browsing and keeping your ip hidden and I suppose encrypting unencrypted traffic is a plus.
However iCloud relay also routes your dns queries which yeah is good if you want to see the app transparency report, but doesn’t really help block anything.
From what I know Nextdns is a great service that helps block unwanted connections or trackers, but then you loose the safari advantage.
So I guess the question is, which is the best option for privacy and security?
(Also the nextdns app hasn’t been updated for about 3years on iOS)
I’m not sure, it depends on your configuration and blocking list. I don’t use native tracking protection, and my blocklist (oisd) prioritizes functionality over blocking, so in my case everything just works and I don’t have anything special added to my whitelist. I don’t like DNS blocking to be in the way and I also share my configuration with some family members, so that’s why I’ve made this choice, but if you prefer a stricter approach you might have to do some whitelisting.