Bundling DNS with hosting is fine, bundling registration with hosting may be dangerous as per sibling comment.
It doesn't matter too much which side the DNS server is on, although the registrar provided ones tend to be less reliable. The potential for getting into trouble comes when the company that controls your domain ownership also does the hosting, because if they decide to ban you based on content or false flags or whatever, then you may also lose access to your domain name giving you no way to switch to an alternative. If the registrar is separate you can just pick up a different, possibly more fair hosting provider and point your domain at it.
The only guys I trust to do both are nearlyfreespeech.net, and although they aren't going to throw themselves under a bus for you if you are up to obviously illegal stuff, they are principled and do have a lot of experience pushing back against bogus law suits or DMCAs from people trying to exploit the system to get stuff they don't like taken down.
RE Gandi, It's been a long time but I always found their pricing pretty steep. Try out linode, stuff like nameservers are free, their VPS options are not infinitely configurable like gandis, but they are also simpler and way cheaper anyway. I think with Gandi you are paying a high premium for independently customisable resources.
It doesn't matter too much which side the DNS server is on, although the registrar provided ones tend to be less reliable. The potential for getting into trouble comes when the company that controls your domain ownership also does the hosting, because if they decide to ban you based on content or false flags or whatever, then you may also lose access to your domain name giving you no way to switch to an alternative. If the registrar is separate you can just pick up a different, possibly more fair hosting provider and point your domain at it.
The only guys I trust to do both are nearlyfreespeech.net, and although they aren't going to throw themselves under a bus for you if you are up to obviously illegal stuff, they are principled and do have a lot of experience pushing back against bogus law suits or DMCAs from people trying to exploit the system to get stuff they don't like taken down.
RE Gandi, It's been a long time but I always found their pricing pretty steep. Try out linode, stuff like nameservers are free, their VPS options are not infinitely configurable like gandis, but they are also simpler and way cheaper anyway. I think with Gandi you are paying a high premium for independently customisable resources.