I thought it was more like `ssh hosta 'ssh hostb'`, which would be problematic, but that's not the case. Phew.
So while non-secure protocols through ProxyCommand could still get MITM'd if they own hostA's sshd, proxying ssh itself would be fine, assuming you already had fingerprints. Much less worrisome. :)
The only reason ProxyCommand to tunnel SSH would be safe is because your local SSH uses authentication, and you would get the freaky WARNING: REMOTE HOST IDENTIFICATION HAS CHANGED, IT IS POSSIBLE THAT SOMEONE IS DOING SOMETHING NASTY! warning. (eg known_hosts)
Netcat and plain HTTP don't have an authentication layer, so if your proxy server is compromised, so is your plain traffic.
EDIT: see this other reply for another source: https://news.ycombinator.com/item?id=9428518