I do think the need for VPNs is definitely overhyped, when many sites already incorporate "military-grade" encryption through HTTPS. I think there needs to be a push for people to use darknets instead.
It's a demonstration of their incompetence. Encrypted DNS only hides which domain you're visiting from your ISP... it doesn't encrypt your traffic or hide your IP from the sites you visit.
On public WiFi, anyone on that network can still see unencrypted traffic, track your IP, and potentially intercept data. Period.
A VPN isn't a panacea—you need to use a good one—but in lieu of everyone using Tor (which isn't happening), it's a very useful tool to have in the arsenal.