The "Good" (VPN) is exactly as imperfect as it's complete abscence. There has been no improvement whatsoever. Literally, as far as Privacy is concerned, nothing short of "No one actor has the capability to sit on a full stream of traffic", will suffice.
Either you're MITM'd or you aren't. Use malicious postmen if it makes it easier.
If you have the same guy come, and all of your mail goes through him, he can reconstruct all conversational state.
Now imagine you get a different malicious postman at random every day. He eacesdrops on every packet, but he's not privy to which of his fellows is scheduled to get the next packet. Therefore, it's not practicable to MITM in any practical way. This all goes out the window when someone controls the malicious postman scheduler, of course, because then they can figure out a map of who to go to to reconstruct your conversation.
The above is the concept behind Tor, and why the only effective counter to it is to run a hell of a lot of entry/exit nodes so you can conceivably time correlate given enough consecutive probe points are hit.
That a nation could make a new device is arguable, that a nation could make a device that could be delivered without flying planes over another country is less arguable. Even nukes as they stand would only pose significant threats to certain parts of a country (there was a map floating around the web a few days back of areas of the US most susceptible to the - pardon the pun - fallout from a tactical strike.)
Yeah, of course not, that's not nearly the only reason to use a VPN.