Does this matter? We (not just IT people, everyone in the world) always lack the imagination of what could happen, and every time we're caught off guard by the creativity of malicious people. Sometimes a government is to blame, but eventually it's just us. Again, security is a process and a never-ending game of arms race. When you stop playing, they'll get the best of you. (Disclaimer: this is for the sake of argumen…
I would argue that usually it doesn’t matter because of the reasons you mentioned, but in this particular case it really did. The US government, and the NSA in particular, made it a matter of explicit policy to delay and discourage commercial crypto research and development in the US. Off hand, I’d guess this delayed crypto by 10 years. Imagine if 10 years ago, we had today’s understanding of crypto. I’d wager TLS wo…
But I suppose the reason NSA was delaying was they had to develop a workaround for the encryption. Remember, while public key crypto got strong in 1996 when the key lengths ended Tailored Access Operations (NSA's hacking team) was created in 1998, before DES was replaced with AES in 2001.
Now obviously it's not that simple. Phasing out weak standards has taken very long. Personally, I would love to understand what goes on in the heads of developers who still use age old primitives like MD5 and RSA-1280 (iMessage).