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The entire point of Linode's private network is that you're not routing across the Internet to deliver traffic to a machine in the next rack. If you're not using RFC 1918 space that is properly configured, at least one router has to make a decision on whether to eject the packet onto the Internet or keep it inside, as you allude, which means you've added at least one hop to all private communications. The reasons you don't want to do that will be obvious once you scale a bit.

By all means, encrypt your traffic on the private network if you're so inclined, but encrypting across the public IP space and encrypting across RFC 1918 space do not accomplish the same goal, particularly not with the same latency or redundancy characteristics.

Routers route packets between networks, regardless of the address space being used.

Nothing about the use of a public addresses forces an extra hop in the way you suggest.

I don't have

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