This Economist article seems to be spot on.
Diplomatic cables are something entirely different. It's part of the nature of human communication that one doesn't always say the same thing to every audience. There are perfectly good reasons why you don't always tell the same story to your boss as you do to your spouse. There are things Washington needs to tell Riyadh to explain what it's just told Jerusalem and things Washington needs to tell Jerusalem to explain what it's just told Riyadh, and these cables shouldn't be crossed. There's nothing wrong with this. It's inevitable. And it wouldn't make the world a better place if Washington were unable to say anything to Jerusalem without its being heard by Riyadh, any more than it would if you were unable to tell your spouse anything without its being heard by your boss.
But, in a digital world, can we now assume that anything we say in confidence is really in confidence and will not find its way to some unintended audience, or that that unintended audience already has a way of reading this information. It is likely that we--in some ways--just have to accept a new openness because it is here already.