> Many people still don't understand how easy it is for a provider to silently dump and/or manipulate both RAM and disk space in real-time.
That depends on the VPS technology stack being used. IIRC, at least Amazon uses hardware features like IOMMU that prevent any kind of access to the guest's memory from the host side.
If you believe Amazon and trust there is no way that this IOMMU protection can be disabled or bypassed, I guess this is mitigation against some attacks. Seems like mostly just trusting the AWS brand name, which would be more trustworthy than fly-by-night providers even without IOMMU.
AFAIK, there has never been a memory encryption scheme that successfully protects the VM client from the hypervisor, they've all been found to be defective within a few years on the market.
It is probably an useful layer because some of the attacks are not feasible for a remote attacker who has compromised the host but require actual physical access. But the marketing spiel of protecting your data from Amazon itself is just lies, physical access is more powerful than root access, no exceptions.