This goes beyond simple diffusion of responsibility, leaders at Google and Microsoft were complicit in the crimes the NSA committed and did nothing to stop them.
IBM was able to eventually live down its involvement in the holocaust. In today's world there is no excuse for a modern tech company led by wealthy, enlightened people to commit these kinds of wrongs. Ironically, it's as if Google's mantra became "Be Evil".
Such doings (empowering the NSA, IRS, etc. to snoop on innocent people for the express purpose of entrapping them or contriving other evidence) are pretty much the definition of exactly the kind of insidious evil that one would hope to be able to trust its service providers not to engage in.
My prediction is that within a few months as viable open source alternatives for Google and Microsoft services become available, we'll see lots of people leaving their cloud platforms/services.