Contrary to the article's inflammatory title, software engineers haven't quit their jobs at the USG en masse. As for the "with the government" vs the "for the government" rebuttals: surveillance and research contractors haven't stopped working with the USG either.
I don't think there will be droves of people leaving because of recent scandals. But it sure will make it harder to answer a smart college grad who asks "Why should I work for the NSA?" when he/she has options at private tech companies.
I like money, I like job security, I like playing for a winner, I like being on the bleeding edge.
Were I crypto guy, I would snatch up a vacated-on-principle spot at the NSA in a heartbeat.