As an opinion column that I recently read written by a member of the intelligence community pointed out that America's problem wasn't that they spied on their 'friends' and 'allies' but that they got caught doing so, and that Obama's implausible denials are damaging his reputation amognst the community. I have to agree, everyone plays the game but America's the kid who bribed their way onto the team without truly knowing how to play, they've got a pretty horrible track record when it comes to spying on people and they managed to get caught doing it, can you see the British, French or the Russians (who Snowden seems to have now hooked up with) letting something of this magnitude slip and getting caught? I certainly can't.
I'll quote Bob Carr one of the previous Foreign Ministers for Australia who said it was a "safe assumption" that his phone calls were being monitored.
Also slightly of topic but still dealing with the same thing in regard's to Snowden's 'reveal' that Australia is/was spying on Indonesia and Malaysia well firstly good job on breaking operational secrecy and telling them exactly what and how we were doing it (although if the Indonesians and Malays didn't already know, what does that say about their spy agency?) and secondly "Wooo big deal" so we spy on our neighbours, who happen to be 'friends' but also happen to be one of the biggest threats to Australia when you put it like that, why wouldn't we spy on them?
I'm thinking the Indonesians, Malays and Germans are more pissed off at the fact they either didn't know it was happening or that they weren't able to counter it, rather than the fact it was happening.