but that dnsmasq instance is configured by default to consult the ISP's DNS servers by default as upstream.
Nope, validating in stubs is a thing. systemd's resolved does it. Apple's high-level network frameworks do it if you ask as of a couple of years ago (they've been back and forth on DNSSEC in their lower level API for longer than that). I'm not sure how well they work but they're there.
Every iPhone on the planet might as well be a recursive resolver? Yeah, nah.
Stub resolver: A resolver that cannot perform all resolution itself.
Stub resolvers generally depend on a recursive resolver to
undertake the actual resolution function.That's right, it's not recursively working its way down from the root because it's a stub resolver.