You have to put an adult in the room.
It is important to remember for the most part we aren't talking spies here. Mostly we are looking at data analysis and interception. Then you have what you might consider special forces. Teams to do SAS style recon, go in the field to install the "wire taps", or take down "terrorists" the police can't handle. You can even have scenarios like a Hunter-class JumpShip sitting outside the gravity well, picking up a world's electronic emissions and HPGing the results back home. Heck, we know they deploy satellites just for that purpose.
Fair. And that's what the Falcon Watch seems to have done during the Invasion era, keep it as "honorable" as possible, such that Warriors didn't feel like they were getting their hands sullied. The Falcons take a very early MI-5 (MI-8), young US Military Intelligence, early CIA/MI-6 attitude - in the words of Henry Stimson "Gentlemen don’t read each other’s mail." Basically signals intelligence (SIGINT) alongside very rudimentary special operations.
The Wolves (-in-Exile) Watch seems to have taken the Allen Dulles approach that 80% of intelligence can be found in the news and the rest is HUMINT/special ops, hence looking to Loki and the ISF as inspiration.
These two Clan views eventually get us to the Dark Age/ilClan conception of the Watch, but that's 100 years after the re-formation of the Watch during Operation Revival.
What we know about Anglo-America intelligence relatively early on is that the "adult in the room", much like the Clan model, was incredibly inaccurate because they assumed the enemy thought like their standard military commanders. I think you are absolutely right to say this is mostly analysis and interception, but I'm not sure Invasion era Clan even managed to rise to the level of SAS level recon - likely far below.
It took decades for CIA/MI-6 to realize that intelligence was not just military intelligence - for the Clans, it seems like it took them more than a century - but that may be what happens when you have a warrior mentality trying to do non-warrior work.
(One thing I have never been able to wrap my head around is how the Dragoons have probably the finest Spheroid intelligence service after ROM, yet Intelser seems to have been mostly SIGINT. The only answer I've come up with is that Jaime and Joshua Wolf exhibited all of the character traits that Alan mentioned and figured out how to out maneuver the Spheroids).