I read article about insecure DHCP setups: http://www.gnucitizen.org/blog/r00ting-public-wifi-networks-dhcp-name-poisoning-attacks/ and thought it would be nice to check my own setup. I discovered that dnsmasq has option --dhcp-ignore-names, but it's not turned on by default. IMHO it should be handled somehow, either updating the documentation (including a warning about this), or changing the defaults.
Isn't that expected behaviour? When I'm configuring home network, I do have some level of trust in other hosts. If I was configuring a "public hotspot", I wouldn't follow "home router guide". If you disagree, please reopen this bug and I'll send it to dnsmasq maintainers as I don't see any need for change in documentation.