Or so I claim. Here's why:
It would be killer app, albeit a controversial one, for Google.
But live street-view data will be available sooner or later and the American trend is to let the private sector gather the data, then sell the data to the public sector (even when the data is highly suspect). So I'm sad to say that I doubt privacy and security advocates will suddenly triumph over the live street-view concept.
Users will contribute data from their homes or from their cars as they drive around (similar to the Personal Weather Station trend). Why would they do this? Some will do it just because they like being part of the initiative. Others might need a little more persuasion.
Hmm... Persuasion... Like what?
The obvious incentive is free mobile data service, via Google devices and spectrum, as long as the user's cam is communing with the the grand data center. A lot of folks would gladly put a bug-eye camera and GPS tracker on their car roof to save upwards of $60 per month for tethered high-speed mobile net access.
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