You have a solid grasp of what is technically being done, though I think you are less alarmed at what's already taken place than you should be given this.
The NSA is completely out of control and in a position to blackmail anyone, cut off and control the entire worlds communications and subvert anything they want.
The NSA and the USG are simply telling everyone that we should trust them to be the good guy, just because. While the government has already proven they will torture abuse and murder people with impunity.
These two things are incongruous - we can't have a political system that is proven to abuse and one that claims to be the moral good guy.
No matter how much we attempt to self-delude.