Privacy versus Security

A new round of the government collecting data on US citizens has been announced with the NSA collecting data from ALL Verizon cell phone users and have been doing so since 2006.  The issue is discussed on Gawker.  A Reuters article quotes a senior administration official giving a reasoning behind the action:

Such information is "a critical tool in protecting the nation from terrorist threats to the United States," the official said, speaking on the condition of not being named.

"It allows counter terrorism personnel to discover whether known or suspected terrorists have been in contact with other persons who may be engaged in terrorist activities, particularly people located inside the United States," the official added. 

I normally understand the tradeoff that is needed to give up some aspects of privacy, but after the revelations of the AP records, the crackdown on leaks and the Fox news reporter, and now this, I wonder where the line must be drawn between protecting citizen's safety and preserving their right to privacy.  I think the administration needs to retool their "War on Terrorism" to prevent a "War on Citizen's Rights."