The movie embedded below is well worth taking some time out to watch. It details the Vectuel's (a French 3D modelling company) techniques for constructing virtual cities:
Of note is the combination of stereo pair derived models with the street level capture, its interesting to get a view of their van as it drives around town grabbing textures.
The movie of Montbéliard illustrates the quality of output:
Take a look at Vectuels site for more info.