Virtual Private Servers are a virtualization technology. It allows you to use a fraction of a server rather than the whole thing. To be fair, though Parlor probably scaled to many hundreds of servers, Amazon's middleware probably works like VPS for most such clients.

The issue is a lack of capable datacenters that are willing to do business with a company that is being targeted by the government, do to the RICO act. The actions against Mega Upload and Gibson Guitar send a clear message. The U.S. Government has no regard for the 5th Amendment anymore. You will be persecuted, regardless of prosecution.

Lastly, the service most resembling VPN is a "reverse proxy" also rarely called an "anonymizing front-end/load-balancer". Cloud Flair is probably the world's largest provider of this service. They will not accept liberal or conservative clients. You either support the neo-communist agenda, or stay quiet; lest you get purged.

Parlor was never a serious endeavor. It is a cash grab, and they just left with the money. They'll fight the easy battles for a bit and then "apologize", while walking away from that cushy job they made up for a year or two. If they are very clever, they may even walk with some cash in their pockets, but probably not much if any.

Parlor running on Amazon had a predictable outcome from the beginning. The Parlor people probably hoped that they weren't going to be that successful, that quickly. They had no strategy to survive the purge though, because they don't really care about coming back. It was pretty medium effort throughout.