Also, while it may drive up the price a little, the idea the NSA won't be able to tap into worldwide internet just because the bits don't travel through the US is naive.
How is that a 'step in the right direction' for privacy?
The whole proposition is preposterous. Russia, India and China all are known to monitor their citizens comms as a matter of course. It's not even hidden or prefaced.
If anything, this makes it easier for those countries to intercept their own citizens' comms --which is probably their whole intent.