(c) what if they have 4 backup cloud installs ready to go live? You take out the 2 there, and then 2 more in a different, unknown hosting company go live.
Who told you that? Any cloud provider can at any time inspect what's running inside a guest, so they'll definitely know it's piratebay (not to mention the metric fuckton of obscure network traffic that make torrents easy to spot).
As far as data, cloud providers usually have functions to administrate guest VMs, which would allow a law enforcement agency to peer into the box as well, nullifying any benefit of data encryption while the box was online.
I may be misinterpreting your comment, but the massive amounts of data associated with torrents don't actually go through the trackers. The trackers just manage peers while the data goes directly from one user to another.
TPB doesn't even run trackers anymore. My impression is that these servers only serve up magnet links (not even torrent files) and textual descriptions of them.
Provided they spread it out even a little, nothing about that traffic should appear out of the ordinary.
TPB only serves torrent text info and magnet links, encrypted, so to cloud providers, it will look like any other site but whose data it cannot read. It is not impossible however, for example, they can use a few workarounds, like making a lot of requests for a specific page of TPB and then monitor the call spikes in their system but that requires for the providers to be aware that at least one of their VMs are hosting TPB. TPB does not even have a tracker now, so no obscure network traffic that makes torrents easy to spot because there are no torrents involved at all.
As for the second point, yes, much like youtube's approach, they can give law enforcement agency access to all VMs but again, they must know what cloud provider is hosting the site at any given moment.
