Government spying is a different can of worms entirely. The Snowden revelations are what prompted Microsoft, Google, et al, to secure the links between their servers. Now, whether or not they're complicit in the government spying on their citizens is another argument (he who holds the private keys holds the data, after all). That kind of touches on the point I made about trust earlier.
I see this scenario as being a bit different. This allows ISPs to sell your browsing data for profit (as if they aren't already making enough of that, but I digress). Unlike before, where it was illegal for ISPs to lift data from, say, online form submissions, now it's back to being fair game for them. Considering how competent some of these companies are when it comes to securing marketing data, I think it's safe to say that if ISPs actually start doing that, we can see the number of personal information leaks drastically increase. Things get worse when you realize that there's the possibility that they could be slurping up passwords that you type into non-secure web forms. Who knows what happens to that data? And what happens if some script kiddie manages to lift the database that stores all of this stuff?
I don't like the smell of any of this. As much as I dislike government spying, at least that data stays more or less in one place. With this it can spread like wildfire, and you'd be surprised how much people can fuck with you if they have your name, address, and e-mail address, let alone any passwords that happen to inadvertently get stored.