Earlier quoted context omitted.
Linode has been compromised how many times now? I don't think considering a VPS insecure is really that far fetched.
That's kind of a tautology. If you assume the system is insecure, then yes its going to be insecure with that assumption. This is going to be true of any VPN system, so i think its an unfair criticism to level against this particular VPN setup. If you want to be secure against local adversaries, use TOR.
More specifically, it's begging the question. The actual definition of begging the question, not the mistaken usage.
To beg the question is to assume the thing which is to be proven.