I really think this article, like many others, is part of a post-Snowden propaganda push. They know they've lost the hearts and minds of nerds -- that's why we now encrypt everything. Where once GCHQ et al were desirable places to work, now I am very much sure that the vibe among the people they want to attract is far from positive. Just look at the HN discussion, for example.
One of my friends is an academic computer scientist, working on steganography, specifically steganalysis -- trying to do the inverse problems like "given 1e12 cat pictures, find the one with hidden information". GCHQ often like to talk to him about his work.
He has spoken of it being filled with mathematicians too socially inept to have an academic career...