Earlier quoted context omitted.
It's less of a big deal because states spy on other states, even their allies. It has been that way since the beginning and everyone usually turns a blind eye unless it either gets leaked and causes embarrassment or it results in a real security risk as in the case of Pollard. Every one of the countries currently lodging complaints over the story of the UK's GCHQ hacking G20 delegates possesses a communications intel…
Sure, I agree that governments spying on other governments is something that is a necessary evil up to a certain point. In my opinion this is vastly different from a government reading and storing pretty much all foreign communication they can get their hands on from an allied state citizens though, something I understand the USA/NSA seems to be doing.
So what the NSA is doing to foreign citizens is no different to what every other country with the means does. My country will happily (and legally) spy on American citizens indiscriminately if it feels the need to, as will all of Europe.