Reference: http://earth.google.com/faq.html
Quote:
1. When were these pictures taken? How often are they updated?
Our images are photographs taken by satellites and aircraft sometime in the last three years. The images in Google Earth are updated on a rolling basis.
2. Are Google Earth images captured in real time?
No, they aren't. Our images are photographs taken by satellites and aircraft sometime in the last three years.
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If they were in real time.. well that would be quite amazing. Just imagine that with Hi-Def videos and extremely good zooming. The ability to spy on anyone in real time. That would be wear an awesome service turns into a law suit.