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circuit_extend checks ExtendAllowPrivateAddresses, but by then it's too late, we've already connected in circuit_handle_first_hop.

This seems to be a DoS risk.

onionskin_answer handles local connections as a special case using channel_is_local, so we might actually be making some that serve some useful purpose. (What is that purpose?)

Do we really need to allow connections to our own address from ourselves?

It might be a good idea to refuse to build circuits to ourselves in circuit_handle_first_hop if ExtendAllowPrivateAddresses is 0, and then see what falls over. Unfortunately, this can't be tested using chutney.