Correct me if I'm wrong, but I'm pretty sure this just encrypts your dns requests. After DNS resolution, the traffic packet headers still have destination/source ip addresses and they can reverse dns lookup the ip addresses. Might make it require a few extra steps, but they're the ones routing the traffic. Even your VPN traffic, they can't decrypt what's inside the packets, but they can see your traffic going to a known Mullvad vpn address in Norway or whatever.