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They already have this in Canada, and people's faces aren't blurred. There hasn't been a lot of publicity about this site yet though: http://www.virtualcity.ca/

http://toronto.virtualcity.ca/ has had street level images for Toronto for some time now, and combines it with Google Maps. Works pretty nice.

You get Montréal and Toronto already geocoded photographies. And it's clear from their press release, they're going after the U.S.: "Over 4 million photographs were taken of the Toronto area, as well as 3 million more for Montreal, providing visitors a unique perspective on two of Canada's most popular urban areas. VirtualCity plans to expand into the United States before the end of the year, beginning with Miami and continuing into the New York, Chicago, and Boston markets in 2007."

You get Montréal and Toronto already geocoded photographies. And it's clear from their press release, they're going after the U.S.: "Over 4 million photographs were taken of the Toronto area, as well as 3 million more for Montreal, providing visitors a unique perspective on two of Canada's most popular urban areas. VirtualCity plans to expand into the United States before the end of the year, beginning with Miami and continuing into the New York, Chicago, and Boston markets in 2007."

A pilot has been launched for Toronto, Canada, not by Microsoft, but by a private company. It's called Virtual City and is cute, but not really all that useful, since the ground-level buildings and artefacts are quite out of date (some of the shots are almost a year old).

Is it me, or is this snapshot a bit fishy?
http://www.virtualcity.ca/viewBigImg3.cgi?size=S&i mage=http://www.virtualcity.ca/Map_images/toronto/ 444/0067444.JPEG

Anyway, nice site...

In Toronto there is a google maps mashup of a similar project, where someone has driven around taking pictures from a truck.

http://toronto.virtualcity.ca/