Intelligence was literally turned around, the protesters and their overseas allies were not guilty by definition.
The agencies who had once tracked them were deemed to be biased and that bias was reversed in short order.
Real intelligence, strategic intelligence, was to be available via satelite. Tactical intelligence via sensors and intercept.
Lack of adequate regional and language experts played a large role in devolution into electronic wonderment.
Domestic intelligence gathering shifted 180 degrees from the left to the right. Relegious and patriotic groups were targeted as likely opponents of anything the new government managers and new educators might approve of.
(The rise of 'born again' fundamentalism didn't help.
Spooks know what they are expected to find, they know where their bread is buttered. Recruits in those days probably came from the same background as did their masters in any event. And, much like the current Hague Tribunal, results can be made to follow ideology and not necessarily fact.
That's why we got Ruby Ridge and Waco; the movement to finally prove fundamentalism and "right-wing' anything as evil had been in progress since late in Nixon's term.