The NSA's actions are legitimizing the internet abuses by China, Russia, Iran and others.
Unfortunately, I'm not sure his proposed solution is doable:
We need to figure out new means of internet governance, ones that makes it harder for powerful tech countries to monitor everything.
As he notes, this hasn't worked well in the past:
We need to avoid the mistakes of the International Telecommunications Union, which has become a forum to legitimize bad government behavior
As has every other international forum that tries to do "governance" (the United Nations itself being a prime example). The only international bodies that have worked reasonably well are the ones that develop standards, without making any political statements about how to use them: "mechanism, not policy". The IETF, which Schneier mentions, is such a body, and can certainly help on the technical side, but I don't see much hope on the political side if it has to be international. (For one thing, why would the governments of China, Russia, Iran, and others care what some international "governance" body says, any more than they care what the UN says?)