As they have conceded they can't readily read what the real baddies are doing, they should now stop spying on the rest of us. We all know they won't do that so although the innocent have nothing to hide, we do like our privacy so in order to maintain it we need to enhance our use of cryptography and start encrypting data at rest as well as in transit.
If they didn't want an arms race they shouldn't have carpet bombed us.
Precision strikes with minimum collateral damage would be the way to go. Mass surveillance just gives the baddies more places to hide.