> USA was reminded that their laws did not apply outside of USA, and they can go use proper slow channels

They were reminded that the Stored Communications Act does not apply outside of the US, but according to the OP the Second Circuit said Congress could easily change that.

If Congress started making moves in that direction it would make sense to get out in front of it with some kind of proposal, because AFAIK there's no constitutional basis for those protections.

The US have always liked to apply their laws on American entities even on foreign soil, see e.g. IRS taxation. Based on decades of precedents like that, it's not difficult to see them attempt to apply the same reasoning for communications.