Sure, Amazon S3 could be spying on your searches just like any web host (especially a cloud host) could spy on connections to its customers' sites. I don't think this is very likely, however.
Nothing shown in this blog post indicates that DDG's S3 account is logging IPs or that there's anything at all wrong with the privacy policy.
You misunderstand. The images are being served from Amazons web frontend to S3. They probably log the requests, not for "spying" reasons, but simply because that's what people tend to do when serving websites; log the website requests that are made against it. Because they do that, a government could contact Amazon and ask them for the data.
Knowing that, DDG may as well log the IP+Search themselves, as it makes no difference. The data is already logged and retrievable by contacting Amazon, therefore what is the point in DDG not logging it anyway?
Sure, Amazon S3 could be spying on your searches just like any web host (especially a cloud host) could spy on connections to its customers' sites. I don't think this is very likely, however.
Nothing shown in this blog post indicates that DDG's S3 account is logging IPs or that there's anything at all wrong with the privacy policy.