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Same reason any other website or server is attacked. People are dicks.
Here's the most likely scenario:
User accesses site/service using public proxy.
User angers somebody while still using public proxy (this can be caused by anything from disrespecting their mother to using all lowercase letters in their username).
User's IP displays as public proxy IP.
Public proxy now becomes the target of attack.
You don't DDoS the guy that comes on your site and starts being rude... right?
We don't, but other people do
I think people use public proxy have intention to do some bad things in the first place. That's why they want to wipe their traces. And public proxy got the retaliation.
Like keeping in control of their personal right of privacy? Every human being has the right to keep his identity and traces to it private as he wishes. I assume that you also don't walk through the streets having your ID# printed in big letters on your shirt for everybody to track you down.
Get your own server, install your own proxy, end of problem.
If you really wish to keep stuff private, how will you trust a public proxy? Some basic privacy measure I look is stop using gmail and run my own email server. which I can do encryption and know for sure if someone try to peak in. If I don't want my ISP to see my browsing history, I run a openvpn to my VM from my home router. I don't any public proxy can really treat your privacy with any reasonable measure.
This is what I mean. You want privacy then get your own server.
Sounds like a salesman pitch.
Why should using a public proxy not create a certain level of privacy? You're hiding the IP you're connecting from from the end-servers you are visiting. If that is your aim, then the public proxy just serves it's purpose.
Then the Proxy server knows a lot about you!
Or even a man-in-the-middle attack for SSL connections like what Nokia does.
Maybe. But the intention was not to be completely invisible. The proxy should just hide the private IP. That's what the OP wanted. Besides that he's the owner of the proxy. I guess he can trust himself.
Edit: To late here. I mixed up the threads.
Is running you own squid proxy any better? Can't your VPS neighbors sniff your traffic?
In theory, it can happen. However, Your ISP has more incentive to do that as they could sell some meaningful data. However, sniff your VPS neighbors is less likely to gather some useful information and I doubt any would try that.