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vpn's are not what you think. They just more your traffic somewhere else. Honestly just use https only and you'll be fine
ISP says hello, seeing which sites, videos you visit and sharing this info with government. Reputable VPN's exist. Link to reputable resource for comparison.
They don't though unless your not using https for some reason
They do hide your "real" IP address from other peers when using BitTorrent, such that angry letters from copyright holders go to the VPN instead of your ISP. The assumption is that your ISP would be more likely to snitch on you when compared to a reputable VPN.
The VPN company is legally required to report you just as much as your ISP
That's true, but you can hope they don't keep logs, or hope they don't know your identity.