“A perfect example is the new privacy feature in iOS 14.5 Beta 1 (V2) which redirects Google Safe Browsing traffic through Apple’s own proxy servers to enhance users’ privacy and to not let Google see your IP address.”
Safari has checked your URLs against Google’s blocklist for years. The hashes hid the site, but Google still saw the IP address of every iPhone that asked. Now Apple sits in the middle. Your privacy now depends on trusting Apple instead of Google. That is an improvement, and it is also Apple taking a shot at a rival’s ad business.