Or putting on other imaginary hats:
...it's time we step in in our role as technology corporations to circumvent and mitigate broken government regulations which harm our customers...
...it's time we step in in our role as malevolent crackers to cease-and-desist thieving things which do not belong to us...
...it's time we as terrorists, child pornographers, and film pirates stop doing naughty things, so that people stop asking for digital surveillance...
How is the counterfactual, "we the governments", any more sensible than the "we the corporations", or the sillier ones? Schneier isn't a government. Inference along the aligns of "If I were the government I would...", in a democracy where you and everyone who kind-of agrees with you are an insignificant fringe, is barely more rational than pretending to be any other third party.
The main effect of this reasoning flaw is to accede more powers to the biggest digital-rights threat of all, national governments, out of the fatal illusion that they will be used to protect you, as imagined in your "If I were government" fantasy. The evidence strongly suggests that the government--which you are not--would much rather use new powers against you, to the benefit of established, paying clients (MPAA).
...we, as private citizens, should oppose regulation of our networks, because governments have been very bad at it, and we do not control them well enough to expect better.