What's the threat model that ram interception is an issue? I think the upsell is entirely reasonable, you get charged more for weird compliance demands.
I'll mention that unencrypted in-memory data is accessible in pure-software ways too (which usually require root) - debugging tools like GDB, VM snapshots, memory forensics tools, /proc/mem, etc. So unencrypted in-memory data is a problem too if root access (including both by infra-provider insiders and external attackers) is part of your threat model.
sudo strings /dev/sda | more # press q to quit
You'll immediately see plain text of various things on your hard drive, complete HTML, etc. Eye opening.I recovered data of mine from ram many times