Is it worth hiding your addresses from the server your wallet talks to, or is that overkill for a normal holder?

Is it worth hiding your addresses from the server your wallet talks to, or is that overkill for a normal holder?

Genuine question. Full disclosure first: I built a small tool for this, but no link and no name, because I honestly don't know if it should exist outside my own circle.

The problem as I see it: unless you run your own node, your wallet asks someone else's server about your addresses. In Sparrow the easy choice is a public server, and that server can learn which addresses are yours, roughly how much you hold, and your IP.

A friend of mine holds bitcoin and couldn't care less about any of this. Explaining didn't work, so I made him a Mac app that connects Sparrow through an encrypted tunnel to a node I run, and keeps Sparrow's settings locked so he can't get it wrong. It works for him.

My questions for you:

1. Is "leak as little as possible about your BTC activity" good practice for everyone, or paranoia for someone who isn't doing anything special?

2. Is a middle step like this actually useful? I know the real answer is "run your own node", and I agree that's the goal. Sparrow also has Tor. But most people I know will never run a node.

The obvious weakness, before anyone says it: whoever runs the node (me) could see my friend's addresses. He's just trusting me instead of a stranger. There's also a mode that points the app at your own node through your own WireGuard tunnel, so nothing passes through me, but it needs a specific setup (WireGuard, Electrum server over TLS, mempool) and I've only tested it on my own installation.

Not selling anything. Real problem or made-up one?