I'm not making an excuse. If the theory is that folks will pull out of U.S.-based cloud services, then the question is, where would they go instead?

The U.S. data-mining program has been revealed. I would not assume the lack of revelations from other nations is definitive proof that those nations aren't doing similar things. In the absence of data it is very easy to make convenient assumptions.

True.

The old rules still apply. If you can't afford someone else to know something, you have to encrypt it in motion and at rest.