I'm not so sure, I think it may be a lose-lose scenario, with both the government and the companies who's products have become compromised taking a big hit.
The people merely avoiding the tainted products aren't on blast here.
The people on blast are the ones publicly advocating for privacy. They're the ones who would be damaged in that scenario, and I for one want a society that takes them seriously.
Well, it doesn't look that way so far. I haven't seen any credible mainstream positions ridiculing the people advocating for privacy. It seems like everyone's pretty well aware that technology sucks and systems like this are not to be trusted, even if they're implemented with good intentions.
Stopping to that level is what they want, CNN: “‘privacy activists’ have released a tool to allow the spread of CP”