Even though it's died down some in the news, the government is still plugging away on surveillance. There are several outstanding legal cases that could put a stop to it, but those have been going on for years and will probably take years more.
The only major concession recently has been limiting the use of StingRays, which are portable cell towers that can track the phone activity of anyone in range. Of course, that only applies to federal government, not local government or agencies with a search warrant. However, it isn't just the government that's spying on your phone.
Hackers, app developers and advertisers are all trying to get a peek at your personal life. Slipping an app on to your phone that gets more information than it should is a popular trick.
Unfortunately, smartphones, especially Android smartphones, aren't really set up with as much privacy and security as you might like. That's why a group called Silent Circle is taking matters into its own hands with the Blackphone 2.