While I agree that the $7B spent on TSA is a waste, I can't agree with his conclusion that we should spend it on other security measures. That just leads to more "wiretap all the citizens" initiatives.
He does say "I'd rather see that money spent on intelligence and investigation". And I think it's evident from his other writings that "intelligence and investigation" refer to focused and targeted efforts, rather than dragenet surveillance.
Undoubtedly that's what Bruce would prefer, but what do you think are the odds it would turn out that way?
Similar to the odds that money would actually be taken away from the TSA's budget :)
Bruce Schneier is completely and 100% against wiretapping all citizens.