I haven't used Google Earth - the standalone app - for a long time. I was sort of surprised about the lack of Street View too, but I expect it'll be in there before too long. Or maybe it'll be a long time, who knows. Can't be easy to do!
One thing I would say about the low-res textures is give it a minute. There's a lot of streaming happening and if you're moving around a lot, you're going to see low-res textures until it 'catches up'. That said there are definitely 'low res' and 'high res' areas. Like I'm sure a lot of people did, I spent some time trying to find houses I'd lived in, neighborhoods I remembered, and all of them were low-res.
I actually found this article on how Google Earth is created - the satellite imagery, that is. I have a feeling that the 3D models are created automatically, which would be a similar method to what Valve's Destinations app does. In that, you'll see a lot of similar effects where objects seem to look fine from one angle, but move around them and you see a deformed 3D model.
If you see Google Earth as being basically the most impressive globe you'll ever own, it's kind of amazing. It won't replace Street View for a while yet, I'd guess. But one day... I'll be virtually peeping inside your window, @Stig. ;)
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