So your Internet IP is known to at least your PC, your ISP, your VPN service. I am running into folk that think they can hide the IP from these 3 places. Sorry folk, not how things work.
There is upside and downsides to each setup. No one can really tell you what's best. Here I mostly turn on the VPN in Opera if I feel like it or using free WiFi. Sometimes I'll use my paid VPN plan but mostly don't due to speed drops.
Also some service like Netflix dropped the hammer on VPN use so you have to know what does and does not work.
As to the your solutions, that's a long study that you have to do. I've yet to see anyone write at length but will write if the router is doing the VPN then I wouldn't be able to stand it due to speed hits. I don't use VPN when using Netflix or speed sensitive apps.
My router LinkSys WRT3200ACM has a VPN client option, it can also be flashed with DD-WRT and OpenVPN server.
Now, I want to prevent my ISP from snooping, blocking content, hide my IP and son on; what I don't undertstand is if I’m running a VPN *Server* on the Router, why do I need a VPN Server in the cloud (a VPN “Service”)? Isn't the VPN Server on the router doing this? If not then what’s the difference between Server on the Router and Client on the Router?
If i do need a VPN Service, in the cloud, would it not be better for me to have a small hosted server in the cloud, something like Digital Ocean’s “droplets” and install OpenVPN server in that. This way I’d have a VPN of *my own* AND be able to have static IP and so on. The cheapest way would be 1GB RAM, 1xCPU, 25GB SSD, 1TB transfer droplet at $0.007 per/hour. I only use it maybe 8 hrs a day. But surely a VPN server in the cloud is the same as running a VPN server on my router under DD-WRT ? Why do I need both?

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