I just read the excerpt, but did they mention OMNIVORE? It replaced CARNIVORE?
I see this, however, as the logical extension of the "zero tolerance" mindset. Without the ability to decide what is or is not significant, everything gets lumped together; everyone gets snooped instead of those who are likely dangerous. Of course, it is the refuge of the intellectually lazy as well.
In terms of economic cost vs benefit, it is the equivalent of drilling an oil well every 100 ft. While you will likely find a lot of oil, you will drill a lot more dry holes in the long run. It is the dry holes which will break you.