... That's how computers work, yes. If you have a way to make a VPN that doesn't see its own traffic, I'm all ears. In the meantime, I trust a VPN more than my ISP.
In my personal case, yes I have because I'm running it myself on a VPS. In general, though, the commercial providers that I would use have stood up to court orders / warrants, so I reckon they're fine.
Unfortunately, I don't have a fast enough uplink to comment on speed concerns.
Did you also trust Onavo’s VPN back in the day?