This should be opt-in, not opt out. IDGAF if it is public information that is perfectly viewable from the street, it shouldn't be on the internet without my consent. There are plenty of perfectly good reasons to blur your house aside from the worry of petty thieves. One, your privacy should be treated with respect. Streisand Effect doesn't really apply here because no one gives a shit if your house is blurred. No one cares as streetview passers by. Talk to your neighbors and then the whole street is blurred like my old street.
This does not obviate the need for action at the legislative level. Google has used the streetview cars to collect plates and radio signals including WiFi information, who knows what else. They have so many databases of information on each of us to sell to adverts and to give freely to police.
This opt out is a positive, likely carved out by litigation, in a very very negative space for privacy rights.