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.
Covert, Buildings - Misc 
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.