I think this has been argued effectively in this thread and, on reflection, I do agree that sniping is a valid tactic in PP. However, it is too unrealistic to imagine that a power would not be aware of at least some enemy activity in its control systems - never mind the huge amounts of undermining which leads to a sniping merit bomb; which is why I think there needs to be some sort of local, or even global, need feed which can provide a partial 'heads-up' to highlight potential trouble spots.
Some might argue: why should a defending power have any help at all in combating sniping? Frankly, I'm interested in balance and realism, from a gameplay perspective. If sniping is truly the only effective way that a smaller power can combat a larger power, then maybe there needs to be an overhaul of the Powerplay system? Maybe both underminers and fortifiers need to have more options at their disposal? Merit bomb sniping is fast becoming the single path of least resistance.
I absolutely agree that there is a massive disconnect with Data Reporting, especially pertaining to any kind of realism. I mean, what would happen if every UPS truck didn't make it to their destination today? I really liked John Casey's idea of giving undermining data only while docked in the station of a Control system. I think this would be a great addition to the game because it would add something (the role of a Scout), rather than limit or take something away.
I don't think PowerPlay needs a complete overhaul, I think 5th columning needs a major look at, and people joining opposing Powers to undermine their own is becoming a tactic now too. I think these things need Frontier's attention far more than the Sniping/Merit Hoarding discussion.
I am hopeful that 1.4 will add some new dimensions to PowerPlay that will help balance the approach to undermining and fortification.