I'm not sure where the claim of "untraceable security" came from.
I do something similar to this. The goal isn't avoiding legal liability or based on the belief that AWS, et al are friendly.
There are multiple reasons, but the single biggest is to thwart last-mile surveillance by my ISP. That alone is worth $10/mo and a few minutes of setup.
1. AWS, DO or Linode won't respond to a subpoena
2. That any of those three won't have extensive logging in place, without the privacy goals that a VPN provider would have
You're just switching your ISP to AWS when you do this, which might be better than what you've got, but certainly isn't flawless untraceable security