If you want even a hint of privacy, you'll have to rent some rackspace and put a tamper-resistant box of your own in there - and stop trusting it the first time it goes down unexpectedly.
If you want even a hint of privacy, you'll have to rent some rackspace and put a tamper-resistant box of your own in there - and stop trusting it the first time it goes down unexpectedly.
This paper describes (and implements) a few of these (Chapter "Key Identification"): http://cryptome.org/0003/RAMisKey.pdf
This 5-year marketing video for police demonstrates switching a computer over to another power source without powering down:
As such, an encrypted file system even on a VPS provides slightly more protection than an unencrypted one. If it's worth the effort depends on your threat model.
So, if you're really the person who needs a tamper-resistant box that's untrusted after unexpected downtime, even renting rackspace is a bad idea. You probably want it under physical control.
If you're however an average user, a VPS with encrypted FS provides decent protection against most casual attackers. For many of us, that's enough.
The NSA hasn't changed that.
Instead, they're both questions of degrees of inconvenience and degrees of difficulty.