Either way, an exploit market is a grimy business, basically war profiteering. I wonder who is off-limits to sell to - certainly the Iranians, but who else, and who decides who is evil and who is good? People will die from some of these sales.
I think we'll see pervasive encryption and P2P (blockchain-based) applications that will push back tyranny a bit. There will be technological solutions to things like secret legal proceedings and warrantless wiretaps. And by pushing computation back out to decentralized nodes, there won't be such juicy targets to attack.