And yes, you can write out whatever is in RAM just as easily.
Did everyone forget that "cloud" means "someone else fully controls the hardware"?
That the most sophisticated attacker with the most resources may be able to tunnel into your data is no excuse for lax security.
Yes, you should protect your private key. No, protecting it isn't going to stop a government agency. A VM is not Schroeder's cat: you can peak without there being any evidence. That was my point. Apologies if I wasn't straightforward in my explanation.
If I want my data to be very secure, its going to run on VMs that boot and run entirely in RAM, read the encrypted data in from persistent storage, and have their power controlled by an intrusion detection system. If you attempt to open the rack, power is removed, unencrypted data is lost, and everything is safely encrypted at rest.
You would only need this security for the most sensitive types of data though.
Edit: Please don't just downvote when I rebut sarcasm/snark with fact. Discuss!