I agree with this stance, it's naive to think that countries wouldn't prefer to block others from having as much information about their own citizens than themselves. This just seems like a reasonable position any government would adopt and defensive in nature as you point out. The discussion then can be on where you set the privacy bar for each case:
- your country spying on your own citizens
- your country spying on foreign citizens
- other countries ability to spy on your own citizens
- your country spying on your own citizens
- your country spying on foreign citizens
- other countries ability to spy on your own citizens