The only reason I see a reason to distinguish is what the info collected is being used to so America can blackmail German citizens, that is shitty. But if we are just trying to collect information about Germany or people who just happen to be in German who are people of interest? That is the NSA mission.
The real issue is the potential for abuse. But the US government has plenty of stuff it could really abuse.
I think you've missed the part where everyone is now (effectively) a person of interest.
So maybe the US has a record of every call made in Germany, but nobody is tracking some random bus driver in Bavaria.
Right now there aren't is the manpower to actually look at even a tiny fraction of what is collected.
I guess in the future, if an AI with human like ability is created, the actual monitoring of every person could occur. But it just isn't a fear right now.
I'd call it psuedo-pirvacy.