Yeah, there are thousands of German (and Austrian) houses blurred out, most of them are just normal residential homes. It's like you can find them on every street. This is just a very special form of privacy, don't know if it makes sense, but it is what it is.
Wikipedia:
As of October 2010, 244,237 German households have opted out Street View. Google complied by blurring the façades on the corresponding Street View images.
As of October 2010, 244,237 German households have opted out Street View. Google complied by blurring the façades on the corresponding Street View images.