Comment by kabouseng

You could still trace packets into and out of the server, showing you exactly where your traffic is being routed. I don't understand how HE will magically solve this. An HE encrypted application cannot be run on a server, because the instructions would still need to be decrypted for them to execute. HE allows a server to perform an encrypted operation on encrypted data. What you can do is a type of DNS server without anybody knowing what URL's you are looking up.