Not exactly. Your ISP still can collect your browsing history and Unbound is much slower until the local cache is built. Your local DNS resolver can't compete with big guys cache. Google, Cloudflare, OpenDNS, etc. respond with constant ms all the time. Also, Unbound may leak your external IP address.
You've got to look at security and privacy holistically and comprehensively. WARNING- the thread takes a left turn off the original path from here
HTTPS is a thing (it's an option in brave to try to force it, but most sites are already compliant), and in most places where these routers will be used, the cache populates pretty quickly.
(got kids checking their Insta or TikTok or Snapchat?)
Once it has, unbound wins handily- my cached queries take 0-1 usec, while the recursive lookups (to the same AUTH servers Google and cloudflare etc use to populate their own caches, BTW) take 16, 32, 64 ms. That's a pretty significant time/speed difference: 10^-6 sec vs 10^-3 sec. I'm already loading the page while your DNS query is returning from google etc...and they have made note of what you searched for (I have too - to make my navigation to where webpages live faster), how long you're on the page...
Diversion blocks whatever ads might try to sneak through (they're more likely to be hail mary types of ads than targeted by what a DNS query gleaned in prior lookups - if they do sneak through), and even then with SLAAC and/or ipv6 privacy extensions, they can't even be sure theyre sending appropriate data to the right machine/device/viewer, and in my case my browser mitigates that stuff as well on the way out with HTTPS...so, more obfuscation/confusion to an entity passively tracking your activities for their gain, basically denying them any way to metric the targeting accuracy where they derive revenues from.
Then there's DNSSEC...
I'm not saying I'm as secure or private as I could be, I'm saying have a look/think about what you're trying to accomplish, OP, and weigh your own risks/exposure and then try to make yourself get to the point that you accept what you're doing is enough for you. DoT and cloudflare may not be the best for you....just as not all traffic needs to go through a VPN