As previously stated, it's not really different from bugging the home or car of a suspected Mafia boss/drug dealer/etc... As long as it's backed up by a court order, of course.
It obviously interferes with the right for privacy, but that's why there are mechanisms which should take into account all factors before allowing such interference (i.e. courts and judges).
If the system is malfunctioning, it should be fixed - but this doesn't mean that it isn't right.
BTW, this CIPAV isn't really news - it's wikipedia page is 2 years old...