Well Tim we must distinguish two aspect:
I agree with Richard Clarke, foreign governments are not surprised by US snooping because almost every state is developing its surveillance programme, more or less efficient. China, Russia and many other countries are investing to improve cyber capabilities on both defensive and offensive perspective. Suverillance and monitoring are common practices, they are the essential part of every cyber strategy, necessary to protect homeland security.
The extension of NSA activity, despite US isn’t the unique government with a so aggressive cyber espionage programme, is embarrassing. US Governments has spied also on allies and it has arranged hacking campaigns (see FoxACID and TURBINE) to hack foreign enterprises like Huawei and Siemens.
Frankly, it is gone too far … it’s policy will damage US IT industry