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But there is also the transfer of trust to the VPS provider, no?

The cloud provider may have a less favorable privacy policy.

I think you touch on a valid point: we should be focusing less on where our traffic egresses and more on ensuring all of our traffic is end-to-end encrypted as much as possible, as well as ensuring any "meta data" (i.e. DNS) is encrypted too.

This is arguably too narrow a way to think about this, as where you traffic egresses can directly affect what sites or services will work - this isn't hypothetical. Both are important!

If you need access to regional services, a common VPN use case and one outlined in the original article, its the single most important factor.

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