How would that help? Tracker leads back to IP of your VM instance. Although your VM instance doesn't keep VPN logs, the VM provider would happily cough up your Name/Address/PaymentHistory in response to a court order. They wouldn't need to know your home IP address.

It removes the sketchy VPN service (which is what he was worried about).

The main selling point of a VPN is to avoid suffering your ISPs craptastic network. It isn't anonymity.

If you want true anonymity, use tor.