So, installing malicious software means your information can be accessed? SHOCKING.
Good: Plug phone into dock, phone interface disappears, desktop interface comes up. Unplug phone, and it reverts. You carry all your files with you. You go to a dumb monitor + keyboard + mouse anywhere and *poof* you have your desktop with you, and it's online because your phone has data. Yeah, it'll be a bit slow - so don't do heavy number crunching and you're fine. And they'll need to make it impossible to run phone apps in desktop mode or vice versa. Some things must be disallowed (although crafty software could intelligently flip between the two).
Bad: phone has desktop interface; or desktop has phone interface.
Which will it be?
"Because of the manner in which the NSA conducts upstream collection"
That's the whole point! You can't say that troublesome methodology is OK because it's the methodology they chose... Circular reasoning at its best.
This might really hurt Russia. The Soviet Union struggled to stay apace with technology, and Russia has too since the collapse of the USSR. Space technology was one area where Russia could make money and truly claim to be among the best. If they're not careful this might kill off one of their few chances for profitable exports in the world economy.