Google Street view also blurs faces and license plates. What killed it in Germany was that some people wanted to be able to have their houses blurred out, and processing these requests took lots of manual work.
The big issue was that Google had the cameras above eye height – German law only allows panoramic images at eye level.
Google's fix for that should've been to genetically engineer a 3-meter tall man. It's eye level for him!
Germany has a history of "Let's make a new race of super humans, and presume they are the default". So I don't think that argument will fly.
I vaguely remember websites dedicated to providing HD images of all the buildings that are blurred in Google Streetview, as another instance of the Streisand Effect.
You can have your house blurred out in the USA, too.
Didn't the courts require that people be allowed to blur their house fronts? Which resulted in large amounts of Google Street View being blurred.