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I'm curious if leaving the data-at-rest encrypted on the filesystem using something like EncFS would mostly solve this. (EncFS encrypts all the files on disk and gives you a mount point to access the corresponding cleartext filesystem)
Likely not, the thing is that most of the big cloud providers definitely have a networking team and it definitely monitors for bittorrent traffic. The thing is they will monitor but until they get a DMCA you normally don't get popped. However, some providers are more finnicky than others and will disable you immediately if you use 6881 w/o encryption. The key really is not to get a DMCA and not use default ports.