Well, how could it not? Pretty much everything marked "noforn" is going to be utterly embarrassing for all involved. That's kind of the point.
The best part about the WikiLeaks controversy, so far, are all the right-wingers asking "why aren't they being prosecuted"? No matter how many times somebody says "you can't prosecute them, they aren't Americans", it never gets through. You can't even pass a law against it, either, or else every other nation in the world would be breaking U.S. law for engaging in their own espionage. And the U.S. would be breaking theirs.
(The U.S. probably shouldn't bring that sort of thing up, anyway, considering they have been trying to collect passwords, encryption keys, and biometric data from U.N. diplomats. Whoops.)
Edit: I think the right-wingers know that prosecution is impossible. Their protestations aside, what they really want is for Obama to kill Julian Assange. Obama wouldn't do it because it's stupid, it would bring down universal condemnation, and wouldn't help stem the flow, since WikiLeaks is bigger than Assange.
But, hey, if the American right had realized that "beheading" attacks do not work in situations like this, they wouldn't have botched Afghanistan and Iraq so badly, would they?