My understanding is that the overwhelming majority of Federal employees on official duty from FBI, DHS, DOD, NSA, etc.. that attend DEFCON (and related conferences) are actually not agents at all, but rather low ranking analysts whose job at the conferences are to assess the material presented and report back. This is opposed to, say, recruiting CIs or surveilling targets. Source: I asked a Fed.
But the request is deliberately creating a delineation: the government is no longer for the people or part of the people, it exists for it's own sake.
Will the government understand and ramp itself down?
Whatever you thought about Ron Paul, his politics would have prevented all of this. All of the wars. All the foreign aid. And we would live in paradise ;)