https://news.ycombinator.com/item?id=19828702

Here's the full comment on HackerNews, the article quoting him only had the snippet. The larger comment makes more sense. Emphasis mine.

We don’t block archive.is or any other domain via 1.1.1.1. Doing so, we believe, would violate the integrity of DNS and the privacy and security promises we made to our users when we launched the service.

Archive.is’s authoritative DNS servers return bad results to 1.1.1.1 when we query them. I’ve proposed we just fix it on our end but our team, quite rightly, said that too would violate the integrity of DNS and the privacy and security promises we made to our users when we launched the service.

The archive.is owner has explained that he returns bad results to us because we don’t pass along the EDNS subnet information. This information leaks information about a requester’s IP and, in turn, sacrifices the privacy of users. This is especially problematic as we work to encrypt more DNS traffic since the request from Resolver to Authoritative DNS is typically unencrypted. We’re aware of real world examples where nationstate actors have monitored EDNS subnet information to track individuals, which was part of the motivation for the privacy and security policies of 1.1.1.1.

EDNS IP subsets can be used to better geolocate responses for services that use DNS-based load balancing. However, 1.1.1.1 is delivered across Cloudflare’s entire network that today spans 180 cities. We publish the geolocation information of the IPs that we query from. That allows any network with less density than we have to properly return DNS-targeted results. For a relatively small operator like archive.is, there would be no loss in geo load balancing fidelity relying on the location of the Cloudflare PoP in lieu of EDNS IP subnets.

We are working with the small number of networks with a higher network/ISP density than Cloudflare (e.g., Netflix, Facebook, Google/YouTube) to come up with an EDNS IP Subnet alternative that gets them the information they need for geolocation targeting without risking user privacy and security. Those conversations have been productive and are ongoing. If archive.is has suggestions along these lines, we’d be happy to consider them.

So it's really more about metadata related to the IP, like geolocation.

A DNS query is not inherently followed by a connection to the server.

And? My DNS provider shouldn't be leaking my information even if I immediately use the info they gave me to connect to the site.

Wouldn't it make a difference in cases where the nameserver and host are not the same entity?