You're mistaken. The NSA might have more legal space to hack into systems outside the US, but their main snooping appears to happen in (forced) cooperation with US companies.
So it's a pretty decent reaction.
Do you really think Cisco is going to reply: 'Nope can't do, this data is "on" Germany!'?, when the NSA spies on Merkel herself?
At least if US passes such laws, they know that instead of risking losing all of its foreign customers, Cisco would rather sue the US government next time, backed by those new laws. This is why this reaction is such a good thing. It's exactly what's supposed to happen to end forced backdoors by the NSA into products bought by foreigners.
Thing is, neither the Constitution nor the law was respected, as we've learned. So why should anybody have trust in some politician or President who declares a new law? For agencies like the CIA and the NSA, there is no law.