B) Of course, any first or last node that you encounter would have access to the clean, unencrypted data. If you were someone "interesting" to big brother, I'm quite sure it has to be because you are working on the federal (international) scale. I'm sure if you were well-connected, you would either have a proxy yourself or know the administrators of those servers. If you actually didn't want to be watched, you would need to keep a fake presence that they would be aware of. It would be suspicious if you somehow had no type of activity going on that they can trace. But a new beautiful invention (pretty old now) called Wi-Fi paved the way for a whole level of the anonymity game. Now you can just freeload off of somebody else's bandwidth with a DHCP acquired IP address straight from a random residence's router.
How do you trace a war-driving laptop?