What I want to know is how much of that signal are they (a) storing indefinitely, (b) DPI or SSL decrypting, and (c) merely keyword analyzing. If they're storing it indefinitely and/or utilizing SSL MITM then we're pretty much done as far as privacy is concerned. But if they're just keyword analyzing cleartext packets then honestly who gives a shit.
My gut is telling me they're decrypting SSL. FB and Google moved to HTTPS everywhere a few years ago and they're clearly getting this data somehow so...
I think this probably nails it - but in reverse order:
They peel a stream off, keyword analyze it - in conjunction with other weights (i.e. who is talking, to whom, between where, what medium, when (i.e. the meta data)) and then they store the key ones.
If I am talking to my Grandma, the drop it. If I am talking to an unknown number in [foreign country] they test for keywords, if any are hits - they store it and add more meta-data.
I mean - the whole thing is what I understood the Mythical Project Echelon to be -- but there was never any concrete evidence of Echelon to the degree that it was rumored to be, until now.
Now we know that they definitely trap any packet they can wrangle.
The tech side of HOW they are seeing everything is inconsequential to the fact that they ARE seeing everything crossing the pipes.
Personally, I believe there is a possibility that the name PRISM itself is an allusion to the method of data slurping the NSA has been using. Where there are plenty of articles talking about their fiber splicing actions etc...
I take PRISM to mean they were taking streams and were able to focus on a particular 'wavelength' in the stream and mirror it to their own systems.
I don't think they had "direct" access to FB systems - even though there are plenty of former CIA/SS/Military (and potentially NSA moles) already openly working as actual employees of FB - I don't think they necessarily needed full and direct access - the NSA taps the ISPs directly.