I think the administration screwed up massively in more ways than one.
- They conducted illegal, and most likely ineffective surveillance. I mean, if they have as huge watchlists as it is claimed, they can't reasonably watch very closely.
- A subcontractor named Snowden, managed to leak a lot of secret stuff. And while it is the most memorable instance, it is not the first serious leak.
- They failed at damage control. The couldn't cover up, discredit, etc... While there is a debate on whether Snowden is a hero or a traitor, no one seem to question the truth of the leaks themselves.
- They couldn't catch Snowden, or found a way to get him to come back home. He is now with the Russians.
Being a believer in the Hanlon's razor, my hypothesis is that the NSA has become a bloated administration. Focused more on their budget and jobs than national security. Massive surveillance is just a way to keep them busy. Snowden's leaks and their aftermath actually tell two things: the extent of surveillance, and incompetence.