Borderline creepy but i'm sure we'll adjust to this just as we did when Google maps & streetview came out. We can't expect much privacy outdoors even in our backyards. Anything that invaded the privacy inside my home i'd get upset about.
There has been some discussion among politicians, such as Mayor Bloomberg in New York, that touched on giving people an ability to 'opt out', but how is that possible? I think you're right. When Google Earth started everybody searchexd for their house and thought it was great, then said "but that's my house." I think that will be the same with this, I'm sure.