In the following 2-minute stop-motion short, Google Japan explains how Google Street View really works.
The 2-minute short, produced by Google’s Japanese subsidiary, focuses on a pet peeve common in Europe and apparently in Japan as well: the freaking out over published photographs of license plates. Google employs algorithms and humans to blur them out in European and Japanese cities depicted on Street View.
As you can see if you watch the video, this sometimes entails burning the midnight oil. Beware: the background music will stick in your head for the rest of the day.