I agree 100%: the greatest harm that could have possibly come about from this mess is not the truth that we have no privacy left, but the mistrust this generates in the spirit of keeping the Internet "Free" and "Open" as a world wide network of computers that enable the free exchange of information and ideas.
Things like the "The Great Firewall of China" will become more and more common - because this event completely validates the fears that these firewalls and countermeasures were designed to address.
Pretty soon getting your data in or out of a country is going to be even more encumbered that trying to clear airport security to get in and out of that country as a human being! :S
Unfortunately human nature & greed drive the need to control - I fear that all we can do now is prevent matters from getting any worse, but the damage has already been done IMHO...