The apartment analogy isn't perfect, but it is a good example to show that just because you own something, it doesn't give you the legal (or moral) right to muck around with it whenever you please. If you're renting computer space to a customer, there are rules that need to be followed. Some of them are legal, some contractual, and some are societal norms.

In this case they definitely violated the societal norms and possibly their contractual obligations as well. I'd say that you have a pretty good expectation of privacy on a virtual _private_ server.

I don't particularly know anything about Rimuhosting. I know most places are oversold to a certain degree. I suspect that there isn't any way to make money in the industry if you're not.