Re: Completely incorrect
That is a somewhat unqualified presumption. Many people use VPNs because they value privacy - that doesn't make them criminals.
No, it doesn't. But the fact that the VPN service knows which IP's you have connected to the VPN from doesn't appear to compromise your privacy. Somebody paranoid enough to bother with a VPN would presumably be doing it because they think (or know) that their ISP is providing information on their connections in any case. If that is the case then logically you'd expect your ISP to know that you are accessing a VPN service.
ISP: The VPN connected to $VPN
VPN provider: The VPN connection came from $IP
This is rather circular. It was only a problem here because they proved that he was accessing information from home and work, and his employer handed over the machine that he'd used and the FBI pulled information out of it via digital forensics.
That doesn't sound like it has huge privacy implications if your not doing something illegal enough to justify a warrant seizing your equipment for forensics work?