Thats not entirely true. The problem with internet privacy is people's greed. Lets say you set your connection to go through, say, 4 proxies. There is a SIGNIFICANT chance that each one of those proxies are going to log you. The webmaster of the proxy wants to log their activity for statistical purposes (to determine whether the proxy is being used, by whom, etc). Because all those proxies are being logged, you can be found.
However, if there is a proxy somewhere (there probably are a COUPLE) who actually log
absolutely nothing (this means disabling internal system logging as well), THEN the trail would stop there. Unfortunately, it is impossible to actually know who logs what. A webmaster can say "oh, yeah, we don't log anything", but that doesn't mean they don't. Maybe the webmaster isn't actually logging anything, but isn't experienced enough to realize that the internal operating system is logging anything anyway (logs all connections into and out of the computer).
So in response to The Adfeng, I would say that while it
is possible to completely hide yourself, it is hard. If you set up the proxy yourself, that proxy would lead to you, so you always have to rely on others. Unless, of course, you pull the "oh, I just run the proxy....someone else used it to do something" card

(don't do this....you are liable for anything that happens under your proxy if you cannot point to someone else).
Now, in response to Notagh, yes, you can have things on the internet that no one can snoop on. While internet service providers can always snoop on connections, it is a lot harder to snoop on data (not to mention encrypted data). If you are worried about the ease of decryption, just make your own encryption and don't use a mainstream encryption type. If everyone knows that the data is encrypted with, say, Base64 (please don't ever encrypt sensitive info with this.....its a non-cypher encryption), it will be extremely easy for people to reverse engineer the encryption type since they know exactly what it is. However, if you make your own, no one knows exactly how it is encrypted which makes decryption infinitely harder (of course, you must always account for bruteforcing, but thats easy...just use a passkey thats longer than 8 characters (if its a passkey encryption)).
Does this make sense? Sorry, I don't have time to read over my post....class time!