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Could you setup a VPN, but instead of using VPN servers, use the Tor network. That is, could you create a client that intercepts all your online packets and data (similarily to a VPN client) and forwards them through the Tor network (rather than a VPN server) before returning them back to the user?

This seems, like an interesting concept but is it possible? So far, I've managed to complete simple tests such as accessing urls over Tor, but that is about it. (I'm using Python by the way)

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No, this is not possible. TOR works on higher layer than VPNs and is only able to substitute your TCP stack. It is not possible to relay raw IP packets via TOR, like you can do over VPNs.

I know this might sound very limiting (and it is), but there's some privacy advantages here. TOR is designed to limit possibilities of traffic analysis by reducing the variance of packets. They're intentionally of the same size, with minimum number of headers (unlike TCP). It is also ensured that no unsolicited packets will be delivered to a client - all the connections must be originated from the client. This would not be possible if connection-less protocols were allowed on the network.

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