Yes, good point. And regarding state attorney generals, how is this not data theft? It seems to go far beyond privacy issues, the program is in every way that matters a trojan that steals personal data. I can't see how it could not be considered so given the details of what was discovered.
If I were an evil-state-attorney-general, I'd be calling up Path and saying "Here's a list of names (unsaid - of suspected drug dealers), please forward all of their details and contacts, and the details and contacts of anyone who lists them as a contact. Thanks"