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Re > you may simply change the default setting to block all incoming access for public areas.
How do you do this in Win 7?
i don't see too much benefits of using ProXPN at public hot spots. it seems only to encrypt traffic between your computer to their servers. the result is the people around you at the hot spot can't see what you are doing, but at the other end, the traffic from their servers to the Internet is still not encrypted otherwise your target sites cannot understand you at all.
Plain text would only be encrypted hot spot to server, as you say, but that would still make the hot spot end safe, and that's the basis of the inquiry here.
This technical paper will help you implement VMware’s VM encryption as well as implement Veeam encryption which together will achieve the nothing ever in the clear goal. If a bad guy steals VMs, backups or traffic they get nothing.