I didn't hear of this until just now. This is incredibly amazing IMO. The image resolution is decent, but as a test I tried to zoom in towards windows, license plates, etc, but it got too pixelated then to be able to make out anything.
I'm not sure what is the reason for this, other than expanding on their maps obviously, especially because of the potential for abuse in regards to say stalking, privacy, and terrorism (some terrorist groups in Iraq and elsewhere use Google Earth to plan operations and whatnot).
Though IMO, Google was founded, developed, competed with, then flew by so many other companies who were once the leaders in search engines, maps, audio and video search, web-based email, etc... Plus they offer a lot of free software and development tools and contribute in so many areas. And much of it is free, yet they make a killing with mostly basic, non-intrusive ads. Quite a company... I hope they continue with such amazing innovations but don't get too shady.