I have serious issues with the NSA spying on civilians, the lack of oversight, the notion that the NSA can use terrorism to justify whatever they want to do regardless of due process, just because they think it's really, really important, but... this particular thing doesn't really feel like news. Governments spy on other governments. They always have. I don't feel that threatens my civil liberties.
I think the danger of stories like this is that they muddy the waters. The fact that the NSA spies on foreign heads of state is _not the issue_. This kind of spying is what they were set up to do. If we all have knee-jerk reactions to this just because of the anti-NSA zeitgeist, we distract from the things the NSA is doing that actually pose serious threats to our civil liberties.