James Fallows has an interesting piece in the Atlantic called Why NSA Surveillance Will Be More Damaging Than You Think discussing trust in the US for the info-infrastructure of the Internet is part of why we have Google, Facebook, Amazon, and Apple. As that trust gets eroded by the behavior of the US government, users may elect not to continue leaving their data with US companies.
The real threat from terrorism has never been the damage it does directly, even though attacks as horrific as those on 9/11. The more serious threat comes from the over-reaction, the collective insanity or the simple loss of perspective, that an attack evokes. Our government’s ambition to do everything possible to keep us “safe” has put us at jeopardy in other ways.
It will be interesting to see whether the fall of the US information giants could be due to a balkanization from a Asia, Europe, and South America backlash. Some regions already have giant amounts of participation in non-US alternatives. This was from long before the NSA scandal.