How can I trust them to manage my server correctly if their security has been less than stellar? I am trusting them with my data. Something they have failed to keep secure in the past. It is the question they will not answer, because Linode is now akin to an used car dealership.
I get that some people don't trust Linode with their data and I think that's fair. But it doesn't really have much to do with managed vs unmanaged. Surely if you don't trust them with a managed server you should also not trust them with an unmanaged one.
Not only that, if they are managing your systems, how sure can you be that they'll inform you of a compromise. They seemed pretty content not to discuss/reveal the previous security issues until they were forced to.