Any opinion is acceptable, and in this case the 2 aren't mutually exclusive.
Although "but the other guy is doing it too" sound like a bad excuse. This kind of thinking typically leads to escalation.
So before using "the other..." better be very very sure it's worth it.
Ofcourse it leads to escalation. What do you think the reaction outside the US to PRISM is? Are other governments, now that they know the extent to what the US is upto, going to reduce data collection and strengthen privacy laws?