We have been working on internal software to allow rapid photomodelling in SketchUp. The software allows images to be rectified according to camera lens type to ensure height data can be accurately modelled and mapped in any 3D software package.
A movie of the model to date can be viewed here (167Mb 1280×780 .avi)
Using this technique you can quickly model for applications such as Google Earth or game engines. At the moment we have made good progress with the Oblivion Engine, we will post a movie of this as soon as we can. It is an interesting development route and hopefully opens up the ability to visualise architecture in games.