There's a spectrum of concerns... Same as there's a whole range of options between "I live in a compound guarded by genetic clones of me, conditioned to do my b

There's a spectrum of concerns... Same as there's a whole range of options between "I live in a compound guarded by genetic clones of me, conditioned to do my bidding" and "my house has no doors, I trust everybody" 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.