I don't even see why they would need to remove identifying marks as long as it's pictures that can be taken from public property.
It sounds kind of retarded, especially in terms of businesses which I think would WANT their street addresses known so you know... someone seeing the pictures during a search might go "oh gee that looks like a neat store in the area we're interested in, maybe when we go there we should check it out".
Private residences are a bit differant I supposed, but by the same token, but unless you know something about the person there already, what the house looks like at an address is meaningless. "Oh gee, look there is a house where there is supposed to be a house, and it has the proper sequential numbering for the street".
I don't know, this seems unusually retarded.
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As far as people's concerns go, I think there is a legitimate point behind the goverment doing something for terms of law enforcement (cops and such have rights that normal citizens do not to begin with, and in the end you eventually have to trust someone) and what normal people would do with it.
*IF* there was a chance of someone being able to use this to case houses and such more easily for purposes of robbery I might think there was some legitimacy to it, but as I understand things this is no more intense than the guy walking in front of your house anyway. It's not like they are putting out blueprints, floorplans, and the location of your valuables.