I've been using this extension for a long time after switching from the OG Adblock Plus issues and honestly there is nothing to complain about. It works like it says and if you're worried about the permission asking for your IP, it is to stop a way to sneak around your rules. This new version of uBlock "uncloaks" the request to bg.example.com and discovers that it's actually example.badguys.com. This is why it needs the dns permission, which is what that warning is about.