It was blown WAY out of proportion, and pretty much every team was doing practically the same thing in terms of the signals, the Pats just got "caught" doing something they thought was in the rules, but misinterpreted it.
The thing that I think is pretty funny is whenever someone doesn't like the Pats or they're jealous, they just go straight to the Spygate silliness. I guess It's easy to have resentment towards a team which has been to 5 Superbowl's in the last 11 years.
Spygate was easily the most overblown controversy in the history of sports, it was just ridiculous.