FBI looking to leverage “port readers.” How will that affect cloud adoption?

According to CNET, “The U.S. government is quietly pressuring telecommunications providers to install eavesdropping technology deep inside companies’ internal networks to facilitate surveillance efforts.”
“FBI officials have been sparring with carriers, a process that has on occasion included threats of contempt of court, in a bid to deploy government-provided software capable of intercepting and analyzing entire communications streams. The FBI’s legal position during these discussions is that the software’s real-time interception of metadata is authorized under the Patriot Act.”
The FBI is looking to install what it internally refers to as “port reader” software. One former government official said the software was formerly known internally as the “harvesting program.”   You get the idea.  They want to install systems that read information as it moves through these ports, perhaps to spot interesting patterns.
While this may seem justified by the government in their war on terror, this will have a chilling effect on the adoption of cloud computing.  Also, this is right on the heels of the NSA scandal, which is now international news.  Is this a one-two punch that will send many to non-US cloud providers, or will it force them to forget about cloud computing altogether?