The Japanese version of Google StreetView is facing an increasingly higher number of complaints, about a variety of topics. Along with the usual complaints (faces, license plates), there is the issue of people using the images on secondary sites for the purposes of discrimination and bullying.
To help combat this, Google has set up a new system that makes it easier for users to report problems. They even allow users to report problems with secondary sites, which Google will then deal with (ask for removal, legal action, etc).
The concern now is that this action might not be enough. I guess only time will tell.
Google Japan published an animation of how faces and license plates are blurred: http://www.youtube.com/watch?v=PQGrIsYUm4c