The NSA operates a Tor exit node at Georgia Tech, and likely at other research institutes and universities. The fact of the matter is, people who use Tor are the ones trying to hide from the government, and it only makes sense for the NSA to run Tor exit nodes and analyze all traffic passing through them. You probably have more privacy by not using Tor at all.
It makes sense for the NSA to run exit nodes for the same reason it makes sense for the U.S. Office of Naval Research to have funded its creation and for the U.S. State Dept. to heavily fund its upkeep. There is a vested U.S. national security interest in residents of hostile regimes to be able to freely access the Internet without being traced, even with the knowledge that it may be used to make it more difficult fo…
But in a world where individuals have access to extremely powerfull tech, something has to be done.
I think the solution for privacy might look like something different. Maybe the government could read everything, but there would be some good transparency tools, ensuring proper usage.