My personal view is that the line should have been drawn before they got to the point of illegal wire taps. It was not uncommon in past precedent, though, for every action of an administration to be considered in the interests of national security and ergo extra-legal - I recall Lincoln was routinely criticized for even worse excesses than Bush has been. Bush, at least, has not suspended habeus corpus, last I checked.
Look, I'm not saying I agree with it - I don't; I believe that the freedoms given to us in the Constitution require certain trade-offs in security, one of those being the possibility of gomers flying planes into buildings and killing thousands. C'est la vie. Speaking as someone for whom 9/11 was a very concrete and real event (given that my apartment at the time was right next to the Pentagon, and I witnessed the whole thing first hand) and not an abstraction, if that's the price of the Constitution, I'm okay with it.
But I understand the opposing point of view, based on my knowledge of military history and intelligence, that the level of security perceived necessary in this day and age and war is not provided for by the guarantees of the Constitution. The Law - the arena in which the Constitution resides - is not meant nor designed to provide for security, it is intended to provide for justice. Two very different things, with two very different approaches, that in the arena of asymmetric warfare (i.e. terrorism) mix very, very poorly. How do you combat an opponent who uses the very freedoms guaranteed by a society to attack said society? You do it one of two ways: the Clinton method - guaranteeing society's protections, and thus allowing the terrorists to operate under a certain measure of freedom, or the Bush method - stomping all over the terrorists, but compromising society's protections. The problem is that either way, you're !@#$ed...either the terrorists operate largely unmolested and successfully (as al Qaeda did under Clinton), or they're greatly hindered but you lose guaranteed freedoms (as under Bush). Pick your poison. My preference is somewhere between the two (strict adherence to Constitutional law inside our borders, "anything goes" outside) - and is notably insufficient as well. The problem, at its most fundamental level, is that our legal and social systems are not set up to fight this kind of war.