Here's a great article on how Google Earth is creating the ability to fuse geospatial information layers for visualization purposes for the US Department of Defense. Link.
I'll have to admit, even as a die-hard former ESRI employee, that the Google Earth visualization platform is hard to beat. It is simple and easy to use, provides a good viewing tool, and Google seems to be able to responsively make changes to Google Earth rapidly to meet customer's needs. But, it still isn't useful as an analysis tool like ESRI's ArcGIS is. The DOD executive decision makers may be asking for Google Earth to help them visualize the information needed to make the tough decisions, but most of the information creating the layers behind what they see comes from ArcGIS users.
ESRI is marketing a Google Earth-like viewing platform that will work well with ArcGIS 9.2 called ArcGIS Explorer that blends good visualization tools and detailed analysis capabilities, but it still isn't quite there. I played with it extesively last week and it still has some bugs in it. ESRI is trying to compete with Google Earth, and it is sad to say, but I believe as the Google organization gets bigger and more cumbersome it should be easeir for ESRI to compete in the viewer market.
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