this is great. i've been evangelizing sketchup for years. i've probably sold at least a couple hundred copies for them (no really, i'v shown quite a few gamedev leads) i'm guessing that it will bring sketchup (and 3d modeling) semi-out of mainstream obscurity.
now does this fit in what seth said in his talk?
i'm guessing that google will give it away for free and allow users to make their own house and neighborhoods for google earth.