A performance optimization around a trivial thing like a favicon is no reason to destroy everyone's security.
Let's assume DDG is a great and honest company and will collect all the info, but never use it for anything bad. Guess what, they can get still hacked and all the info leaks out.
This is a horrendous breach of trust that they WERE collecting it however, and I'm glad they got caught. It will not be tolerated. They'll have to change this or face a revolt.
Well hold on now. If there's a valid technical argument, and it's not a violation of privacy, why doesn't that make sense?
If people are so distrustful of DDG that they don't believe that argument, why use their browser under any circumstance?