In this instance it was embarrassing because it brought into question how well the US would be able to keep secret strategic information.
And yeah hacking into allies is pretty unscrupulous. A bunch of the Snowden leaks showed that Israel, France, Germany and others have hacked into us.
It's the way it all works.
> Secrets of this nature have a tendency to leak. If it wasn't Snowden, it could've been anyone else
There were many such leaks, e.g. Binney.
> reporting of confirmed infiltrations of US and allied companies and systems is fine by my book
I agree wholeheartedly with this.