I don’t get it… How does this protect anything? If we want our packets to reach a web server, we need to write the server’s IP address on them. If a snooper has the IP, can’t they just lookup the domain name from a DNS server? Or is that not a service DNS provides?

If the IP address is encrypted, how will the routers know where to send the packets? Only solution I can think of would be onion routing… Am I wrong??