This sounds like more fear-mongering. Satellite imagery has been on the internet LONG before Google Earth came out and you can get MUCH better resolution pictures from commercial satellite companies if you pay a fee. This is not new technology. It also doesn't help that some people believe that Google Earth is real-time imagery.
http://www.foxnews.com/story/0,2933,170733,00.html
http://www.foxnews.com/story/0,2933,170733,00.html
But some are questioning whether Google Earth also provides terrorists with readily accessible data that they can use to attack the United States or other countries, particularly when users can zoom in from space level to street level.