http://www.directionsmag.com/article.php?article_id=2701 is a link to a piece by Bruce Joffe on a California assemblyman's attempt to define "computer mapping systems" for purposes of excluded items for disclosure under the state's Public Records Act. Bruce does not agree with the assemblyman's approach.
http://www.gearthblog.com/blog/archives/2008/03/pentagon_did_not_ban_google_earth.html is a link to a Google Earth posting about Google's Street View photos of defense facilities and the Department of Defenses reaction. Given the rapid changes in spatial technology and the growth of the industry, these type of situations are bound to occur. However, it appears based upon these accounts that both Google and the Department of Defense reacted appropriately and reasonably.