If AWS used Intel SGX, then it would be possible for them to offer VMs that ran inside of a secure enclave that AWS could not peer into as long as Intel didn't give them a backdoor.

(Well, it seems like SGX is insecure right now with all of the CPU vulnerabilities, but in principle it may be fixed in a future generation and be well-suited for this.)

The fact that you wouldn't have to trust your host specifically could have a real decentralizing effect for cloud hosting: people would be able to run stuff on any cloud host without needing to trust them much. If you just wanted compute power and didn't care about strong uptime/connectivity, you could even safely rent cheap VMs on computers of random individuals.