RMerlin sees this as a privacy concern as many users may not understand their data is centralised for Firefox.
Firefox claim they will not use or sell user data but RMerlin still has concerns, maybe they lie or get hacked or change their mind without notice.
To be clear, my privacy concern isn't about Mozilla or Cloudflare's potential use of the data (I'd say I generally trust these two companies not to do anything nefarious with user data), but about the fact that all of this data is aggregated to a single point. If someone ever managed to compromise that one single server address, you can imagine the sheer volume of data they would gain access to.
However, my primary issue with all of this is the fact that it's
automatically enabled, which will bypass any security measure that
you, the end-user/network admin, might have in place. Case in point: if you decided to implement a network-wide DNS-over-TLS setup, or use a DNS-based parental filter to protect your kids, then Firefox might transparently, without you even knowing it, bypass those security measures you have put in place, putting your kids at risk of being exposed to inappropriate content.
While I'm not a fan of the DoH protocol itself (in part because of how easily it can bypass your self-implemented security measures, or your configured network management rules), my biggest beef here is that Firefox will 1) automatically, 2) if it feels like it (i.e. if in the US, but not if another country) enable it. It makes any troubleshooting a pain, because a technician will have to guess whether you are using a public DNS server, or the DoH-selected DNS server. The address you might get by using nslookup might not necessarily be the same as used by Firefox. It's a tech support nightmare. In this regard, I like Chrome's approach, where what they do is just bump the protocol from regular DNS queries to DoH if you are currently using a DNS server known to support it. For example if your network uses Quad9, then it will switch to DoH, still through Quad9. It will have no drawback, beside maybe a slight slowdown in resolution speed.
In an ideal world...:
1) Client operating systems would support DNS-over-TLS at their resolver level, with user-configurable servers, not hardcoded ones
2) Domain owners would secure their zone through DNSSEC
3) DoH would just go away and die
Technologies like DoH are just poorly engineered workarounds, and their supporters fail to point out the side-effects caused by their implementation of the technology.