I agree that spies spying on people is hardly news. As far as any possible diplomatic consequences, it was more idly wondering whether anyone would try to turn the fact that this time it got out to their advantage during the G8.

But it doesn't reflect well on all the politicians rushing to defend mass surveillance/dragnet operations on the grounds that these capabilities are only used in serious crime/terrorism/whatever other specific cases they admitted to.

It's also rather surprising that some of these tactics were used or worked at all, not because there was any real doubt that these kinds of organisations could use them if they were willing to commit enough resources, but more because anyone attending a high profile event like that actually fell for the tactics and made it worthwhile to bother trying them in the first place.