Apple Maps does the same thing and was doing it before Google. Interestingly, Apple seems to have better imagery, at least where I am; trees are sharper and more realistic, the ground imagery is more detailed and the colors truer to life. In the forests, trees are rendered clearly enough that I can recognize the landmarks, which just isn't possible in Google's rendering. The only downside is that Google's colors are prettier than Apple's, at the expense of accuracy.

Bing (via the Maps app) is also doing this type of thing, but with a less robust set of data.

Google's implementation appears to be based on oblique (angle, taken from plane) imagery similar to Bing's "Bird's Eye View" feature; if you open up old Google Earth you can see oblique shots from various angles that match the exaggerated coloring of the final 3D maps.

Seriously though, check out Apple Maps. I didn't think I'd be recommending it, as I nerd out about Google Earth a lot, but it's actually got great imagery & models.