I've often thought about doing this, and it's probably easier when ever just with a tailscale exit node or something. What's always given me pause though is that this basically just an ec2 instance or other cloud instance that you route all your traffic through? Doesn't that mean it's just an non anonymous as your home IP if so?

Depends what you’re defending against. Certainly I don’t suggest you get up to bad things using this as your protection!

But if your VPS exit-point is outside the UK, it should defend against the indiscriminate traffic-logging dragnet mandated in the UK. (And maybe even if the VPS is in the UK it does that? I think these provisions might apply only to ISPs).

Basically I don’t mind too much that the spooks can figure out what I’m up to if they specifically make the effort. I object much more to having all my online movements observed and stored and made available to dozens of public bodies. The physical world analogy would probably be that someone is assigned to tail you and record what building you go into every time you leave the house, and I think almost nobody would be OK with that.