You could argue that a data hoarder in a jurisdiction other than your own is even less significant for personal data security. I agree though that western companies more or less don't have any case here as they behave the same way as TikTok in China. They are just less dishonest about it.

Furthermore the behavior of intelligence agencies sanctioned this kind of surveillance. Ironically the decreased trust will be vastly more relevant to lessened security than their surveillance attempts could ever make up for. So they failed their primary mission too. In a supposedly free country it is a strategy that only produces losers and there is not change in sight.